06.01.202603:27:31UTC+00Australian Dollar Hovers Near 1-Year High

On Tuesday, the Australian dollar posted a slight increase to approximately $0.672, maintaining its position near the highest level observed since October 2024. This movement was attributed to an improved risk appetite and a weakening US dollar. Markets appeared to disregard the US military strike in Venezuela overnight, which reportedly led to the capture of Venezuelan President Nicolás Maduro. Contributing to the Australian currency's uptick, the US dollar softened following an unexpected decline in the ISM manufacturing survey, sparking concerns about the American economy's vitality. Within Australia, all eyes are on the forthcoming November inflation data, set to be released on Wednesday, with anticipations of a modest decrease in inflation. These results may be critical for shaping monetary policy, as the Reserve Bank of Australia has indicated it might consider raising the cash rate if inflationary pressures do not relent. Currently, market participants estimate only a 30% chance of a rate hike in February, anticipating limited overall monetary tightening with approximately 37 basis points of rate increases projected for the current year.