AUD Firms As Markets Predict RBA Hiking Cycle

AUD

The Aussie Dollar opens slightly higher, as markets considered an RBA interest rate hike to be more likely in the second half of 2026. Asian equites also opened overall higher, with the ASX +0.3%, Shanghai Comp -0.5% and Nikkei +1.1%. A quiet day data-wise out of Australia and Asia yesterday; nothing is releasing today, this weekend or Monday.
 

USD

The AUDUSD opens slightly higher at 0.6609, as the USD continues to fall off expectations that the US Federal Reserve would continue their easing cycle further into 2026.  Wall Street closed flat, with the Dow Jones -0.1%, S&P 500 -0.1% and Nasdaq +0.1%. Last night saw American Unemployment Claims released at 191K, much better than expectations of 219K.  Tonight will have Core PCE Price Index m/m and UoM economic indicators – expected to show a slight recovery in the American economy – and will be heavily viewed by the markets ahead of the American EOFY.
 

EUR

The AUDEUR opens at 0.5676, increasing due to reduced market fears and risk-on attitudes ahead of the Christmas season. Nothing major happened out of Europe yesterday and likely the same will happen today, however their equities had a rally with the Dax +0.8%, Cac +0.4%. Much of the future movement from the currency pair will likely be from macroeconomic factors.
 

GBP

The AUDGBP opens at 0.4960, trading sideways between 0.4945 and 0.4961 last night. The FTSE closed marginally higher at +0.2%. The English economy have had no updates this entire week, and this will continue until Wednesday morning with their Monetary Policy Report Hearings.
 

NZD

The AUDNZD opens at 1.1472, trading between 1.1426 and 1.1472 last night. The NZ economy has been struggling overall this past year, and there’s no economic data expected to be released today or next week.