In December, Australia saw an increase of 54.8K in full-time jobs, bouncing back from a previous drop of -56.5K. This rise in full-time employment stands out against global currency changes, such as the USD/INR holding its ground, the Japanese Yen weakening, and the GBP/JPY rising. These shifts reflect broader financial trends, particularly UK inflation affecting the GBP/USD and the cryptocurrency market’s performance.

Gold Drop and Cryptocurrency Recovery

At the same time, gold prices have dropped due to reduced demand for safe assets. However, some altcoins are showing signs of recovery in the cryptocurrency market, approaching important resistance levels as selling pressures ease. The market on the previous Wednesday showed a general increase in assets, with stocks, bonds, gold, cryptocurrencies, and crude oil all rising. Axie Infinity surged by 8%, driven by higher whale buying activity. Investors should conduct thorough research and consult professionals due to the inherent risks. The information provided is not intended as specific recommendations, and individual analysis is crucial. FXStreet and its authors are not responsible for any errors or losses related to this information.

Australia’s Job Market and Its Impact on the RBA

The significant shift in Australia’s full-time employment in December 2025, from a loss of over 56,000 jobs to a gain of nearly 55,000, points to a surprisingly strong labor market. This development is likely a game-changer for the Reserve Bank of Australia (RBA), raising the chances of a tougher monetary policy in the coming months. It contradicts earlier market expectations of a slowing economy. This strong jobs report follows the Q4 2025 inflation rate of 3.1%, which has brought underlying price pressures back into focus for the RBA. With employment and inflation both increasing, the current pricing for rate cuts in 2026 seems off. We suggest that traders think about selling Australian bond futures or buying options that benefit from rising short-term interest rates. The policy differences between central banks are becoming clearer, especially compared to the Bank of Japan, which is sticking to its dovish approach. This situation makes long AUD/JPY trades particularly appealing, and we recommend looking at call options to take advantage of the expected gains. The yen’s weakness and the strengthening Australian dollar create a solid opportunity. Historically, we’ve seen similar patterns in 2022, where strong employment data led to aggressive actions from central banks, causing notable currency fluctuations. With iron ore prices stabilizing above $130 per tonne in early January 2026, the case for Australian dollar strength is looking stronger. As a result, traders should also brace for more volatility in AUD/USD, making strategies like options straddles worthwhile. Create your live VT Markets account and start trading now.

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