Post #15589

Aussie Opens 2026 Near 14-Month Highs as RBA Inflation Focus Intensifies The Aussie is starting the year on the front foot, trading near 14-month highs as it shows relative strength against its major peers. Markets are now looking ahead to upcoming inflation data, which could be pivotal after the RBA signaled it’s willing to hike if price pressures don’t cool as expected. December RBA minutes made that stance clear, and attention is already turning to Q4 CPI on January 28. A firmer-than-expected core print would put a February meeting move firmly on the table. Sentiment has also been helped by improving domestic data, with manufacturing activity holding at a three-month high. A weaker U.S. dollar has added another tailwind, while zooming out, AUD closed 2025 up nearly 8%, marking its strongest annual performance since 2020. - Alan