US shares recover on AI-driven gains
US sharemarkets rebounded from their first back-to-back losses of the year on Thursday, helping the economically-sensitive Australian dollar outperform.
Strong earnings from AI chipmaker TSMC supported the recovery, while a drop in weekly jobless claims to the lowest level since November added further momentum. The Dow Jones gained 0.6%.
The Aussie led gains, with AUD/USD up 0.2%.
The kiwi slipped, with NZD/USD down 0.1%.
In Asia, USD/CNH fell 0.1%, while USD/SGD edged up 0.1%.
Inflation expectations ease but remain above RBA band
Australian consumers’ inflation expectations dipped slightly in January, with the Melbourne Institute survey showing the trimmed mean slipping 0.1 points to 4.6%—still higher than the 4% recorded a year ago.
The pullback follows a short run of rising expectations and remarks from RBA Deputy Governor Andrew Hauser. He said November’s slowdown in CPI to 3.4% was “helpful” but warned that inflation above 3% remains “too high” and outside the 2–3% target band.
Hauser added that the RBA will review the full fourth-quarter CPI later this month but won’t base decisions on a single data point.
AUD/USD continues to hover near the lower edge of its ascending channel.
Key support sits at 0.6636 on the 50-day average, with the 100-day average at 0.6593 providing the next line of support.
China’s Xi hosts wave of global leaders
Chinese President Xi Jinping is welcoming a steady flow of leaders seeking to reset ties with Beijing. Visitors include South Korea’s Lee Jae Myung, Canada’s Mark Carney, and the UK’s Keir Starmer. Talks are expected to focus on trade and access to critical minerals such as rare earths.
The visits follow Donald Trump’s recent tariff truce with China, which has spurred other nations to engage quickly with Xi to avoid being sidelined in US–China dealings, Bloomberg reported.
USD/CNH has slipped to a 12-month low, trading just 0.1% above its January 12 trough of 6.9628. USD buyers may look to take advantage.
Resistance levels stand at 6.9943 on the 21-day average and 7.0331 on the 50-day average.
Aussie rebounds as US shares gain
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 12 – 16 Jan
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
