AUD climbed 7.81% in 2025 against the dollar, today we see that it is indicating that it wants to continue this trend early in 2026. We are closing in on 14 month highs again and could possibly create higher highs from there.
Next week’s inflation data could have an effect as a possible rate hike is coming in 2026 for the Australian dollar. Policymakers are also prepared to tighten policy if inflation does not slow down as anticipated.
Data showed that manufacturing activity remained at its highest in 3 months for December 2025.
This stronger Aussie dollar was also supported by the weaker U.S dollar which has proven to struggle in 2025 due to many factors.
This marked the strongest performance for AUD since 2020.