FX.co ★ Aussie Dollar Weakens as Greenback Firms

The Australian dollar weakened to approximately $0.69 against the US dollar on Monday, retracing some gains from the prior week due to a stronger US dollar. This strength in the greenback followed President Donald Trump nominating Kevin Warsh as the prospective Federal Reserve Chairman. Warsh is perceived by markets as a more hawkish option, likely to endorse lower interest rates. However, the Australian dollar's decline was somewhat mitigated by forecasts of an impending rate hike from the Reserve Bank of Australia. There is a broad expectation among investors that the central bank will increase the cash rate by 25 basis points to 3.85% on Tuesday. This would represent the first rate hike in over two years, aimed at curbing persistent inflation. On the economic data front, Australia’s Monthly Inflation Gauge increased by 0.2% in January 2026, decelerating from December’s 1% and representing the slowest growth rate since August 2025. In parallel, ANZ-Indeed Job Ads surged by 4.4% month-on-month in December, marking the first rise since July and the most significant monthly increase since February 2022.