The Australian Dollar (AUD) gained ground against the US Dollar (USD) on Monday, largely driven by a rise in risk aversion in the market. The AUD/USD exchange rate improved after the release of Australia’s TD-MI Inflation Gauge, which indicated a year-over-year inflation rate of 3.5% in December, up from 3.2% previously. This uptick in inflation data bolstered expectations for a more hawkish stance from the Reserve Bank of Australia.
As traders reacted to the inflation figures, the USD weakened, contributing to the AUD’s rally. The shift in market sentiment was further influenced by concerns surrounding global economic stability, prompting investors to seek refuge in currencies perceived as safer options. The AUD/USD pair now stands at higher technical levels, reflecting a potential shift in trading dynamics as inflationary pressures in Australia continue to shape monetary policy outlooks.
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Data Source: FX Killer Analysis Team Updated: 2026-01-19 06:37
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.