DAILY CURRENCY OUTLOOK

Summary
• Minimal high-impact events this week for AU & US markets, meaning low volatility is expected.
• USD may receive a boost from CPI numbers on Wednesday, weighing on the AUD/USD pair.
• Expecting the AUDUSD to range between 0.6700 and 0.6790 this week on technical analysis.

• This week is expected to have low volatility in the FX markets due to reduced high-impact events.
• This in conjunction with a heavy USD, can push the AUD/USD slightly higher.
• Low volatility and a heavy USD can push AUD/USD modestly higher to our next key resistance level of 0.6790 this week.
• The US CPI numbers are the key events for this week due on Wednesday evening.
• The headline CPI y/y number is expected to be the same (5.0%) from the previous month, with the Core CPI m/m figure dropping to 0.3% from 0.4%, which is a positive sign.
• The USD is likely to remain heavy this week. The USD may receive a boost post the CPI release with a positive expectation.
• Recent commentary in the US over the uncertainty of a potential ‘constitutional crisis’ over the US debt ceiling impasse could also weigh on the USD.