Aussie dollar to remain range bound in line with greenback

The Australian dollar is likely to be in a range trade in line with the greenback this week after falling just over one percent in the offshore session on U.S. dollar strength and renewed global political uncertainty.

At the Asian open on Monday, the Australian dollar was trading at 75.95 U.S. cents, down from 76.32 U.S. cents at Friday's close.

The local unit traded heavy in Friday's offshore session from renewed greenback strength from improving U.S. economic activity data and the flight to safe havens from the attempted coup in Turkey, but recovered early on Monday on easing Turkish uncertainty.

Thus the local unit is likely to remain range bound during the week's trade, Commonwealth Bank of Australia senior currency strategist Elias Haddad said, trading in line with the overall trend of the U.S. dollar.

"We expect the USD to consolidate this week because U.S. interest rate expectations are unlikely to adjust materially higher," Haddad said.

Locally the Reserve Bank of Australia's July policy meeting minutes with main focus to determine what the board defines as "further information" needed to "refine its assessment of the outlook for growth and inflation" to allow an adjustment to monetary policy stance.

"We believe (Stevens' statement) leaves the door open for another rate cut in the likely event that 2nd quarter (Consume Price Index) CPI is on the low-side," Haddad said.

At 0945 local time (AEST) the Australian dollar was trading at 75.96 U.S. cents. Endit