Australian Dollar Steady Near 3-Year Peaks

2026-02-05 02:16 By Joshua Ferrer 1 min. read

The Australian dollar held steady around $0.70 on Thursday, trading near three-year peaks, supported by the Reserve Bank’s hawkish policy outlook and robust trade balance data.

Figures showed the country's trade surplus widened to AUD 3.37 billion in December 2025, up from November’s three-month low and slightly above market forecasts.

The improvement was driven by a rebound in exports amid stronger year-end shipments of metal ores and minerals, while imports fell to a three-month low.

The Aussie has also been underpinned since the central bank hiked rates a quarter-point to 3.85% in its February meeting, leaving the door open to further tightening.

Markets imply around an 80% chance of a hike at its May policy meeting, and a 50% probability that rates could end the year at 4.35%.

Elsewhere, the AUD climbed to a thirty-five-year high against the Japanese yen, while the US dollar was broadly stronger as markets priced in a slower pace for potential Federal Reserve rate cuts.



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