AUD Strengthens Against USD After Hot CPI Report
The Australian Dollar (AUD) strengthened against the US Dollar (USD) after a hotter-than-expected Consumer Price Index (CPI) report from Australia.
The CPI for the fourth quarter of 2025 came in at 0.9% quarter-on-quarter and 3.4% year-on-year, exceeding market forecasts of 0.8% q/q and 3.2% y/y.
This suggests that price pressures remain sticky, prompting investors to price in a higher probability of an RBA rate increase at its next policy meeting in February.