The dollar index slipped to around 97.5 on Monday, falling for a second consecutive session as traders cautiously awaited key economic data delayed by the partial government shutdown. Markets are set to receive the January jobs report on Wednesday, with recent indicators pointing to a slowing labor market, alongside December retail sales data. The postponed January consumer price index reading is due on Friday. Markets currently expect the Federal Reserve to keep interest rates steady in March, with potential cuts in June and possibly September. The dollar also came under pressure as risk sentiment improved, supported by rebounds in tech stocks, precious metals, and cryptocurrencies. Meanwhile, the greenback remained volatile against the yen following the landslide victory of Prime Minister Sanae Takaichi’s ruling coalition in Japan’s weekend elections, which paves the way for expansionary fiscal policies.

Gold climbed more than 1% to above $5,030 per ounce on Monday, reaching its highest level in over a week, as investors awaited key US economic data that could offer clearer guidance on the Federal Reserve’s interest rate outlook. The January jobs report due Wednesday, which is expected to show signs of stabilization in the labor market, as well as inflation data set for release on Friday will be closely watched. The precious metal also gained support from political developments in Japan, where a landslide victory for incumbent Prime Minister Sanae Takaichi strengthened expectations of looser fiscal and continued downward pressure on the yen. In addition, demand from central banks remained strong, with China’s central bank extending its gold purchases for a 15th consecutive month in January. On the geopolitical front, attention remains on US-Iran talks, with both sides agreeing to continue discussions this week to ease tensions and avoid a military confrontation.

Household spending in Australia dropped 0.4% mom in December 2025, reversing a 1.0% growth in the previous month and missing market estimates of a 0.2% increase. The latest result marked the first monthly contraction since March 2024, reflecting the impact of cost pressures and elevated interest rates. Expenditures fell for food (-0.4% vs 0.6% in November), clothing (-2.4% vs 2.5%), furnishings (-1.7% vs 2.4%), health (-1.3% vs 0.4%), recreation (-0.5% vs 2.0%), and miscellaneous items (-0.9% vs 0.2%). In contrast, spending rose for alcoholic drinks (2.0% vs -1.8%), transport (0.6% vs 0.6%), and hotels & restaurants (0.5% vs 1.2%). Regionally, spending shrank in New South Wales (-0.6%), Victoria (-1.0%), Western Australia (-0.3%), but increased in Queensland (0.2%), South Australia (0.3%), the Northern Territory (2.9%), and Tasmania (0.1%). On an annual basis, household spending grew 5.0%, the softest in four months, after a 6.0% gain in November.

WTI crude oil futures fell to $63.2 per barrel on Monday, extending the weekly decline, as easing tensions between the US and Iran alleviated concerns of potential supply disruptions in the Middle East. President Donald Trump said that Washington had held “very good” talks with Iran last Friday and that further negotiations were planned for early this week. However, he also warned that “consequences” would be very steep if Tehran failed to reach an agreement over its nuclear program. Meanwhile, investors are closely monitoring crude flows from India, with Trump announcing last week that New Delhi had agreed to stop buying Russian oil as part of a trade deal, though Indian authorities have yet to officially confirm this commitment, instead stressing that safeguarding energy security remains their top priority. Earlier in the year, oil prices had rallied amid heightened geopolitical risks and temporary disruptions to output, despite concerns over ample supply.

Japan’s current account surplus fell to JPY 728.8 billion in December 2025 from JPY 1,071.8 billion in the same month a year earlier, falling short of market forecasts of JPY 1,060 billion. The primary income surplus inched lower to JPY 1,189.4 billion from 1,248.9 billion while the secondary income deficit edged higher to JPY 255.4 billion from JPY 242.3 billion. At the same time, the services account shifted to a deficit of JPY 340.1 billion from a small surplus of JPY 0.11 billion. In contrast, the surplus of goods account surged to JPY 134.9 billion from JPY 0.54 billion in the previous year, as exports (4.5%) rose faster than imports (3.7%).

China’s foreign exchange reserves increased by USD 41.2 billion to USD 3.399 trillion in January 2026, up from USD 3.358 trillion in December 2025. This marked the seventh consecutive monthly rise and the highest level since November 2015, supported by a persistently weaker U.S. dollar. Meanwhile, the People’s Bank of China continued to add to its gold holdings for the fifteenth consecutive month, with reserves rising slightly to 74.19 million fine troy ounces in January from 74.15 million in December 2025. The value of these holdings climbed to USD 369.58 billion, up from USD 319.45 billion a month earlier. In 2025, China’s foreign exchange reserves increased in 11 months, rising by USD 155.512 billion over the year.