SYDNEY, July 24 (Reuters) - The Australian and New Zealand dollars were rangebound on Monday, as traders looked ahead to a busy week with a slew of central bank rate decisions, Australia's inflation report and China's stimulus package in focus.
The Aussie bounced off a key support level to steady at $0.6734, after sliding 1.6% last week to a seven-session low of $0.6723. It has support at the 200-day moving average of $0.6720 and faces resistance at the recent top of 69 cents.
The kiwi dollar was hanging at $0.6168, having fallen 3.2% last week and breached its 200-day moving average of 62 cents. It has come under pressure in recent sessions as New Zealand's central bank believes it is finished hiking rates.
Apart from policy decisions from the Federal Reserve, European Central Bank and the Bank of Japan this week, the near-term fate of the Australian dollar would rest on the release of the second quarter inflation report on Wednesday.
The much-watched data is critical in determining whether the Reserve Bank of Australia (RBA) would need to tighten further in August. Markets currently are split, with odds slightly favouring a quarter-point hike - a 52% probability - given the strength in the labour market has defied rate hikes so far.
Headline inflation is expected to slow to an annual rate of 6.2% in the second quarter, from 7% the previous quarter, according to a Reuters poll of economists. On a quarterly basis, inflation is likely to have eased to 1% from 1.4% previously.
Kristina Clifton, a strategist at the Commonwealth Bank of Australia, said the biggest uncertainty for the Australian dollar this week is whether or not Beijing announces an economic stimulus package.
"Size and composition of the package will matter for currencies. A large package focused on infrastructure will push AUD up significantly."
The Aussie touched a one-month top on the kiwi at NZ$1.0925, helped a little by bets on a hawkish RBA.
(Reporting by Stella Qiu; Editing by Jacqueline Wong)
