Australian Dollar Eases from 15-Month High

2026-01-08 02:20 By Joshua Ferrer 1 min. read

The Australian dollar depreciated below $0.670, easing from fifteen-month highs, as investors continued to assess the prospect of a February interest rate hike, while weak trade data weighed on sentiment.

Figures showed the country's trade surplus narrowed to AUD 2.94 billion in November, the smallest in three months and falling short of forecasts of AUD 4.9 billion.

Meanwhile, markets remain divided on whether the Reserve Bank will move soon, with some economists cautioning that an abrupt rate increase could disrupt Australia’s still-fragile recovery.

Such a move may place renewed pressure on the private sector, which has only recently begun to show signs of improvement.

After November’s mixed inflation report, attention turns to quarterly CPI data due later this month for a clearer view on policy outlook.

A top RBA official said the inflation slowdown was largely expected and still too high.

A February rate hike is currently priced in at 25%, with total 2026 tightening around 30bps.



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