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Forex Brief:
Abstract:The Australian Dollar is decoupling from global trends as strong consumer spending reinforces RBA hike bets, while the Japanese Yen faces renewed intervention threats near the 158 level.

Currency markets are displaying significant divergence in early 2026, with the Australian Dollar (AUD) showing surprising resilience driven by domestic inflation risks, while the Japanese Yen (JPY) faces renewed selling pressure amid political uncertainty in Tokyo.
AUD: Consumption Guzzles Liquidity
Contradicting the global easing narrative, the Reserve Bank of Australia (RBA) may be forced to hike rates further. November household spending data surged 1.0% MoM, driven by service sectors and “Black Friday” turnover.
JPY: The 158.00 Red Line
The Yen has weakened back toward the 158.00 threshold against the Dollar, prompting an emergency meeting between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent.
USD: Weathering the Storm
Despite the institutional crisis at the Fed, the Dollar Index (DXY) remains rangebound. The opposing forces of safe-haven demand and institutional erosion risks are keeping the greenback locked in a tight consolidation pattern.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
