The Australian dollar rose to around $0.669 on Monday, rebounding from the previous session as a weaker US dollar provided support. The greenback came under pressure following President Donald Trump’s threat to impose an additional 10% import tariff starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the United Kingdom. Adding to the currency's appreciation were strengthening expectations of higher interest rates. Oxford Economics Australia cautioned that the economy remains in an “awkward position,” highlighting uneven growth alongside signs of re-accelerating inflation. They emphasized that the Reserve Bank of Australia is expected to remain patient, potentially delaying any policy relief. Monday's data showed that Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute, rose 1% month-on-month in December 2025, the fastest pace since December 2023 and a sharp increase from 0.3% over the previous two months.