# Australia's hotter Q4 core inflation fuels bets for rate hike next week | Reuters

> Australian Bureau of Statistics data showed Q4 core inflation running hotter than economists expected, which raised bets on a Reserve Bank of Australia rate hike at its next meeting. The Australian dollar rallied 1.4% overnight to a three-year high as the greenback fell, then eased to about $0.6997.

- Date: 2026-01-28 · published 2026-01-28T12:00:00.000Z
- Category: macro · region Australia · magnitude medium
- Page: https://feedsoft.ai/events/21313-australia-s-hotter-q4-core-inflation-fuels-bets-for-rate-hike-next-week-reuters
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher expected Australian rates widen yield gaps and push the Aussie stronger against the US dollar. For feed buyers, a firmer AUD can make Australian barley and wheat slightly more expensive for dollar-based importers.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-06-19 | [Loonie rallies as hotter inflation clips rate cut bets \| Reuters](https://feedsoft.ai/events/58829-loonie-rallies-as-hotter-inflation-clips-rate-cut-bets-reuters.md) | -1.1% | -0.9% |
| DXY | 2026-09-30 | [Canadian dollar firms as softer U.S. inflation weighs on rate-hike bets By Investing.com](https://feedsoft.ai/events/17701-canadian-dollar-firms-as-softer-u-s-inflation-weighs-on-rate-hike-bets-by.md) | -0.1% | +0.7% |
| DXY | 2022-08-12 | [Stronger dollar down for the week as clues point to inflation peak \| Reuters](https://feedsoft.ai/events/40271-stronger-dollar-down-for-the-week-as-clues-point-to-inflation-peak-reuters.md) | +1.4% | +2.5% |
| DXY | 2020-09-01 | [Federal Reserve's inflation target fudge: what it means for Australians - ABC News](https://feedsoft.ai/events/51368-federal-reserve-s-inflation-target-fudge-what-it-means-for-australians-abc-news.md) | +0.6% | +1.5% |
| DXY | 2024-06-12 | [EUR/USD rallies above 1.0800 after soft US Inflation vitalize Fed rate-cut bets for September](https://feedsoft.ai/events/10801-eur-usd-rallies-above-1-0800-after-soft-us-inflation-vitalize-fed-rate-cut-bets.md) | -0.0% | -1.0% |

## Sources

- reuters.com: https://www.reuters.com/world/asia-pacific/australia-core-inflation-tops-forecasts-stokes-risk-rate-hike-2026-01-28/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.