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ForexMediumUpdated×2•Originally published 24 February 2026•Updated 25 February 2026•
1 min read

Australian Dollar Breaks Above 0.7100 as RBA Hike Bets Mount Ahead of CPI

Key Facts

1Australia's Consumer Price Index (CPI) is expected to rise by 3.7% for the month of January.
2Inflation in the previous month (December 2025) stood at 3.8%.
3Persistent inflation reinforces a hawkish monetary policy outlook from the central bank.

The Australian Dollar (AUD) surged by 0.7% to trade above the 0.7100 level during the late Asian session on Wednesday, reflecting heightened market sensitivity to upcoming economic data. This rally comes as investors brace for Australia's January CPI report amid growing speculation that the Reserve Bank of Australia (RBA) may implement further interest rate hikes. While the CPI is forecast to rise by 3.7%, down slightly from 3.8% in December, price growth remains stubbornly above the central bank's target range. This persistence is fueling expectations that the RBA will maintain a hawkish stance or even accelerate tightening to curb inflationary pressures. Market participants are closely monitoring these figures to gauge the future pace of monetary policy, which continues to provide upward momentum for the AUD. However, the prospect of higher borrowing costs remains a significant headwind for the ASX 200 and the broader domestic equity market.