Why did AUD/USD jump today?

AUD/USD rose because Australian CPI came in hotter than expected, lifting the odds of an RBA rate hike next week. That supports the currency through higher carry appeal. At the same time, US dollar weakness on softer yields helped the move. Together, these forces pushed the pair near the 0.70 level.

Will the RBA hike rates next week?

Markets now see a stronger chance of a 25 bp hike next week after the inflation surprise, with some desks flagging the risk of two moves by May if price pressures persist. The decision is finely balanced, so the policy statement and tone will likely drive AUD/USD as much as the outcome.

How does the Fed affect AUD/USD?

The Fed influences global yields and the US dollar. If the Fed sounds cautious on growth and comfortable with disinflation, yields can fall and the dollar can soften, supporting AUD/USD. A hawkish surprise, or pushback on easing bets, would likely lift the dollar and pressure the pair back toward support.

What should Australian households do if rates rise?

If the RBA hikes, review your mortgage rate, repayment schedule, and emergency savings. Compare loan options and consider making small extra repayments if possible. A stronger AUD can ease import costs, so shop around for travel and online purchases. Keep budgets flexible, as central bank guidance may shift with new data.

Global Market Insights

AUD/USD Today, January 28: Hot CPI Lifts RBA Hike Odds, AUD Near 0.70

ByDanny Kontos January 28, 2026January 28, 2026

AUD/USD briefly topped 0.70 after Australian CPI ran hotter than expected, pushing up RBA rate hike odds for next week. Traders increasingly price a 25 bp move, with some expecting two by May. US dollar weakness added tailwinds, keeping AUD/USD bid into a high‑impact week. For Australian investors, the pair’s move affects travel costs, import prices, and rate expectations. We outline what to watch before the RBA decision and the Fed update, plus key levels and trade ideas for AUD/USD.