Australian dollar climbs to three-year high, than edges down, Inflation rises 0.6%; details inside

Australian Dollar Rises: The Australian dollar witnessed a sharp rise on Wednesday (January 28, 2026) and reached a three-year high against its American counterpart. According to the Australian Associated Press, it looks poised for further gains following the news that Aussies are considering international travel.

The Aussie has climbed to its highest level since February 2023. On Wednesday morning, the dollar reached 70.1 US cents after a 1.4 per cent jump. According to ABC, after rocketing to a record level it fell 0.2% to 69.97 US cents. As the Aussie strengthened, the US dollar reportedly lost eight per cent of its value over concerns about tariffs. It is apparently a four-year low.

Meanwhile Australian consumer ‍price inflation rose at a faster annual ⁠pace in the December quarter, data showed on Wednesday. According to Reuters, the core ‌inflation climbed ‌ above forecasts and fuelled wagers for ‌ a near-term hike in interest rates.


The Australian Bureau of Statistics' consumer price index (CPI) rose 0.6% in the fourth quarter, matching forecasts. Annual CPI inflation accelerated ‌ to ‍3.6%, from 3.2%, ‍partly due to base effects and the ‌ impact of energy rebates, Reuters reported. The

The key trimmed mean measure of core inflation increased by 0.9% in the quarter, topping forecasts of ‍a 0.8% gain and unwelcome news for the Reserve ‍Bank ⁠of Australia ⁠which had looked for something around 0.75%. The annual pace rose to 3.4%, from 3.0%, well above the RBA's target band of 2% to 3%.

The S&P/ASX 200 is lower today, dropping 23.90 points or 0.27% to 8,917.70 after setting a new 50-day high. Australian shares gave up early ‍gains on Wednesday after data showing quarterly core inflation overshot forecasts fuelled bets ⁠for a near-term hike in interest rates.

The S&P/ASX 200 eased 0.01% to 8,976.40 by 0041 GMT after rising as much as 0.41% earlier in ‌the day. ‌The benchmark had hit a three-month high on Tuesday.