Australia Day Closure: AUD Reaches 15-Month High

Australian Dollar Performance: The Australian dollar has risen to 0.6913, its highest since October 2024, driven by a strong jobs report and expectations of rate hikes from the RBA.

Interest Rate Expectations: The current cash rate is 3.60%, with market predictions suggesting it could rise to around 4.30% by year-end, with a 63% chance of a hike in February and further increases anticipated by September and December.

Mining Sector Boom: Gold and silver prices have reached record highs, indicating a potential boom in the mining industry, which is expected to attract significant investment inflows into Australia.

Safe Haven Shifts: The FX market is seeking safe havens outside of the US dollar, with the Australian dollar offering attractive returns compared to other currencies like the yen and Swiss franc, despite being at a 15-month high.