Australia’s private sector credit increased by 0.8% in December, beating the forecast of 0.6%. This shows a steady growth in credit demand in the Australian economy. Global market movements were also noteworthy. The USD/CHF rose above 0.7650. The NZD/USD traded around 0.6050, while the Japanese Yen weakened against the USD, with the USD/JPY reaching 154.00.

Currency Market Movements

The EUR/USD pair fell but then recovered to about 1.1920-1.1925, down 0.35% for the day. Meanwhile, GBP/USD decreased to around 1.3750 due to changes in US fiscal policy. Gold prices dropped as positive US fiscal news strengthened the US Dollar. Stellar continued to fall, hitting a three-month low, and technical signals suggest further decreases. In the stock market, Microsoft faced a significant sell-off, leading to a $400 billion loss. Cryptocurrencies like Bitcoin, Ethereum, and Ripple also saw deeper sell-offs, approaching critical technical levels. FXStreet offers a variety of information on forex trading, including insights on the best brokers for 2026. The site stresses the need for thorough research before investing, given the risks and uncertainties in the financial markets.

Private Credit Growth and Economic Indicators

Australia’s private credit growth exceeded expectations in December, indicating a strong domestic economy. This trend follows a period in late 2025 when inflation stayed above the Reserve Bank of Australia’s 3% target. Traders might consider buying AUD call options against currencies linked to weaker central banks. The US Dollar is gaining strength due to the resolution of a potential government shutdown and expectations about the new Fed nomination. Historically, we’ve seen short-term dollar rallies during Fed transitions fueled by market uncertainty. Traders can find opportunities by buying USD futures or using bear put spreads on pairs like EUR/USD, which has dropped below 1.1900. The sell-off in Microsoft has caused significant concern in the tech sector, reminiscent of previous one-stock shocks before the broader downturn in 2022. With the Nasdaq heavily influenced by a few large companies, this event highlights the need for protective measures. Buying put options on the NDX index or selling out-of-the-money call spreads is a smart way to protect against further declines in the coming weeks. There is clear risk aversion in the market as Bitcoin and other cryptocurrencies face sharp sell-offs, and gold prices retreat after a 25% rally earlier this month. Increased market volatility is evident in the VIX index, which jumped over 30% this week, trading above 22. Purchasing VIX call options or using strangles on volatile assets like gold might yield profits from anticipated price fluctuations. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now