19.01.202601:15:08UTC+00Australian Dollar Gains on Greenback Weakness

The Australian dollar ascended to approximately $0.669 on Monday, recovering from the previous session's decline, as a softer US dollar lent its support. The pressure on the greenback intensified after President Donald Trump announced plans to impose an additional 10% import tariff effective February 1 on goods originating from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the United Kingdom. Contributing to the currency's rise were heightened anticipations of increased interest rates. However, Oxford Economics Australia issued a warning about the economy's "awkward position," with uneven growth patterns and indications of resurgent inflation. They noted that the Reserve Bank of Australia is likely to remain cautious, potentially postponing any policy easing. Data released on Monday revealed that Australia's Monthly Inflation Gauge, put together by the Melbourne Institute, surged by 1% month-on-month in December 2025. This marks the most rapid increase since December 2023, and a significant jump from the 0.3% observed over the preceding two months.