Post #15703

AUD Holds Firm as Markets Eye Jobs Data and Inflation Risk AUD continues it's upward trend as Yields remain elevated. Both AUD and NZD continue to hold relative strength versus major peers as markets await Trump’s Davos speech, which could either cool or reignite Europe-related trade tensions. Focus now shifts back to domestic data. Thursday’s Australian jobs report is expected to show a rebound in employment, with unemployment edging slightly higher and broadly in line with the RBA’s forecasts. The bigger catalyst is next week’s Q4 inflation print. Markets price only a ~30% chance of a February hike, but an upside surprise in core inflation would materially pull forward rate-hike expectations. - Alan