The Australian dollar appreciated to around $0.674 on Wednesday, hitting its highest level in more than fifteen months, as rising geopolitical tensions continued to weigh on the US dollar, while investors awaited upcoming local jobs data this week. December employment is forecast to rise by around 30,000, with the unemployment rate expected to tick up slightly to 4.4%. The often-volatile labor market report could bring upside surprises, with a strong result potentially boosting expectations for a February rate hike. Markets currently assign a 27% chance of a 25 bps hike by the Reserve Bank in February, rising to 76% by May. Meanwhile, the greenback remained under pressure as investors continued to trim exposure in US markets amid concerns over rising tensions with Europe following President Donald Trump’s escalating rhetoric on Greenland. Trump has threatened to impose new tariffs on European nations opposing his plan, while European leaders are weighing possible retaliatory measures.