The Australian dollar rose in the Asian market on Wednesday against a basket of global currencies, extending its gains for a fourth consecutive day against its US counterpart and reaching its highest level in 15 months, supported by a surge in global commodity and base metal prices.

These gains came despite data released today in Sydney showing a slowdown in inflation in Australia during November, easing inflationary pressure on policymakers at the Reserve Bank of Australia.

Price overview

• Australian dollar exchange rate today: The Australian dollar rose by 0.45% against the US dollar to 0.6767, the highest level since October 2024, from the day’s opening level of 0.6736, after recording a low of 0.6717.

• The Australian dollar ended Tuesday’s trading up 0.35% against the US dollar, marking its third consecutive daily gain, amid US stock indices climbing to new record highs.

Global commodity prices

Global commodity and metal prices are currently witnessing a fresh wave of record gains, driven by rising demand from major economies led by China and the United States, alongside geopolitical tensions that have reinforced investors’ shift toward base metals as a safe haven.

This rise is reflected positively on the Australian economy, which is one of the world’s leading exporters of iron ore, coal, and gold, as it helps boost the trade surplus and increase revenues for companies operating in the mining sector.

It also provides strong support to the government budget through higher fee and tax revenues, giving the Australian economy greater flexibility to cope with global inflationary pressures while maintaining stable growth rates.

Inflation in Australia

Data released on Wednesday by the Australian Bureau of Statistics showed that the headline consumer price index rose 3.4% year on year in November, below market expectations of a 3.6% increase, compared with a 3.8% reading in October.

The slowdown in Australian inflation exceeded expectations in November.

These data point to a slight easing of inflationary pressures on policymakers at the Reserve Bank of Australia. However, inflation remains above the bank’s medium-term target range of 2%–3%, which reduces the likelihood of an Australian interest rate cut in February.

Australian interest rates

• Following today’s data, market pricing for a 25 basis point cut in Australian interest rates in February remained steady around 33%.

• To reassess these expectations, investors are awaiting further data on inflation, employment, and wages in Australia ahead of the April meeting.

US stock indices rose during Tuesday’s trading session, extending their gains as technology and energy stocks rebounded amid ongoing assessment of the situation in Venezuela.

Richmond Federal Reserve President Thomas Barkin said that any upcoming decisions on interest rates will require clear and precise economic data, given the risks surrounding the central bank’s dual mandate of price stability and maximum employment.

Meanwhile, Federal Reserve member Steven Miran stated that the central bank will need to cut interest rates by more than 100 basis points during 2026, arguing that current monetary policy remains restrictive and is weighing on economic activity.

Markets are now awaiting the release of the US monthly jobs report for December, due on Friday, for further signals on the future direction of Federal Reserve policy.

In trading, the Dow Jones Industrial Average rose by 0.5%, or 241 points, to 49,218 as of 16:49 GMT. The broader S&P 500 gained 0.2%, or 16 points, to 6,918, while the Nasdaq Composite advanced by 0.2%, or 38 points, to 23,433.

Copper prices surged to a new record high on Tuesday, as ongoing supply disruptions and trade uncertainty in the United States continued to fuel a powerful rally in base metals at the start of the year.

Benchmark three-month copper contracts on the London Metal Exchange rose 1.8% to $13,225 per metric ton during the official open-outcry session, after jumping as much as 3.1% earlier in the day to an all-time high of $13,387.50 per ton. The red metal has gained about 6.6% so far in 2026, having broken above the $13,000 level for the first time on Monday, following a strong 42% rise last year.

Nickel prices also climbed, reaching levels close to a roughly 15-month high and moving above $18,000 per ton, supported by production restrictions imposed by Indonesia.

Albert Mackenzie, a copper analyst at Benchmark Minerals, said the bullish momentum in copper began to take shape in late 2025, when prices recorded their largest annual increase in dollar terms in at least a decade. He added that a significant portion of this move occurred in December, when copper prices jumped about 14%, quickly surpassing the $12,000 and then the $13,000 levels within just a few weeks.

Mackenzie noted that supply concerns have been a key driver of prices, alongside expectations that artificial intelligence and the energy transition will boost long-term demand.

A strike at Capstone Copper’s Mantoverde copper-gold mine in northern Chile has renewed concerns over potential supply disruptions, while China’s Tongling Nonferrous has announced delays to the second phase of Ecuador’s Mirador mine, which has been affected by conflict.

Market participants have also pointed to US rhetoric surrounding potential tariffs on copper, which has led to flows of the metal into the United States and disrupted global supply chains, further adding to upward price pressure.

However, the pace of the rally has prompted some traders to question whether current price levels are justified, according to Mackenzie. As prices climb, debate is intensifying over whether sentiment and speculative flows are beginning to outpace underlying market fundamentals, even as supply risks persist and demand trends remain broadly supportive.

Bitcoin steadied on Tuesday, as an improvement in risk appetite helped the world’s largest cryptocurrency gain some support at the start of 2026. However, renewed concerns surrounding so-called treasury companies prevented the digital asset from extending its gains.

Strategy Inc. (NASDAQ: MSTR), the world’s largest corporate holder of Bitcoin, disclosed on Monday significantly higher unrealized losses on its digital asset holdings during the fourth quarter, following a decline in the value of its Bitcoin portfolio over the course of 2025.

Broader cryptocurrency prices posted modest gains in line with Bitcoin, but largely lagged advances in other risk-linked assets, particularly technology stocks.

Risk appetite improved after markets brushed aside the initial shock from the US military intervention in Venezuela, which also resulted in the arrest of President Nicolas Maduro. Investors are now awaiting greater clarity on Washington’s plans toward the Latin American country.

Bitcoin rose 1.3% to $93,576.7 by 00:59 ET (05:59 GMT). The world’s largest cryptocurrency was still down more than 6% over the course of 2025.

Michael Saylor’s Strategy reports $17.44 billion unrealized loss in Q4

Michael Saylor’s Strategy reported late Monday massive unrealized losses of $17.44 billion in the fourth quarter of 2025, largely tied to the decline in Bitcoin’s price, which represents the company’s largest holding.

There was no directly comparable figure for the fourth quarter of 2024. Strategy had posted a net loss of $670.8 million in the fourth quarter of 2024.

Last year, the company adopted new accounting standards requiring it to mark its Bitcoin holdings to fair value through earnings, a change that introduced sharp volatility into its quarterly profit and loss figures.

Shares of the Bitcoin treasury firm fell about 50% in 2025, as investor confidence broadly deteriorated in the long-term outlook of the company’s Bitcoin accumulation strategy. Prolonged weakness in Bitcoin prices, alongside Strategy’s exclusion from a major US equity index, further weighed on sentiment toward the stock.

The decline in Strategy’s share price has fueled concerns that the company could be forced to sell part of its Bitcoin holdings to meet future debt and shareholder obligations, a scenario that could generate significant selling pressure on Bitcoin prices.

Cryptocurrency prices today: altcoins rise, XRP outperforms

Broader cryptocurrency prices were mostly positive, tracking Bitcoin’s movements, while XRP outperformed its peers.

XRP jumped 12%, supported by rising capital inflows into spot exchange-traded funds, alongside a decline in the token’s supply on major trading platforms.

The world’s second-largest cryptocurrency, Ether, gained 2% to $3,220.24, while BNB rose 0.6%.