The Australian dollar steadied around $0.706 on Tuesday, trading near three-year peaks as investors brace for upcoming inflation data expected to reinforce a hawkish policy outlook. January’s consumer price figures, due Wednesday, are forecast to show the annual pace slowing only slightly to 3.7% from 3.8%, while core inflation is expected to hold at 3.3%, its fifth consecutive month above the central bank’s 2–3% target band. A 0.9% gain in the December quarter triggered the recent hike, and a repeat in the March quarter could further heighten pressure for another rate hike in May. Markets price in roughly a 70% probability of a 25-basis-point rate hike to 3.85% in May, with a June increase nearly fully priced in. All eyes will also be on RBA Governor Bullock at a Melbourne University event Wednesday evening, with any hawkish signals likely to boost the Aussie further. A weaker US dollar added support amid lingering uncertainty surrounding President Donald Trump’s tariff plans.