Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index (CPI) expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.
💡 DMK Insight
Australia’s upcoming CPI data is crucial for traders, especially with inflation showing signs of moderation. A CPI rise of 3.7% could signal a shift in monetary policy, impacting the AUD and related markets. If the actual figure deviates significantly from expectations, it could trigger volatility in forex pairs like AUD/USD. Traders should keep an eye on the Reserve Bank of Australia’s stance post-release, as any hints of rate adjustments could ripple through equities and commodities. The broader context shows a global trend of central banks grappling with inflation, making this data point even more significant. Watch for reactions in the bond market as well, as yields may adjust based on the inflation outlook. Key levels to monitor include the psychological 0.70 level for AUD/USD, which could act as a pivot point depending on the CPI outcome.
📮 Takeaway
Watch the AUD/USD closely around the CPI release; a significant deviation from 3.7% could lead to sharp moves, especially if it breaks the 0.70 level.





