Westpac IQ

Friday issue edition: analysis and forecasts for this week's key releases.

Further trend rise in participation is highly plausible.

Tuesday re-issue edition: analysis and forecasts for this week's key releases.

The latest edition of Sustainability Impact looks at ASIC’s support for smaller companies ahead of their mandatory sustainability reporting requirements, changes in the new Global Risks Report, the aim of Australia’s new National AI Plan, and more.

As consumers open their wallets and splash their cash over the upcoming holiday period, they should be aware that it’s a time when scammers are also getting busy.

The countdown is on for Payday Super and it’s time for super funds and employers to upgrade processes and prepare for the real-time regime. Here’s what you need to know.

The Australian dollar soared higher last week, following an emphatically strong Dec. labour market report which showed unemployment dropping to 4.1%, and the revamping of the dedollarisation narrative on account of geopolitics and tariff threats. Despite this elevated uncertainty, the Australian dollar outperformed its G10 peers over the week, gaining almost 2.5% against the USD and cementing its pole position on the G10 FX leaderboards. AUD/USD opens the week trading on the 0.69-handle. The week ahead is headlined by Australian Dec. quarter CPI and the FOMC. Markets will be glued to the newswires too, as geopolitical risks continue to simmer and as the US Administration lobs tariff threats on trade partners on a near daily basis.

Markets could not take a breather last week; unrest in Iran, escalating threats to Greenland's sovereignty and a US DoJ investigation into the Fed topped the market's list of watch points. The Australian dollar encouragingly held its ground for much of the week, in a relatively contained 0.6660-0.6730 range, and periodically hit new highs on several crosses. The week ahead is quieter on the global data front and locally the Dec. labour force report is out Thursday. We will no doubt remain hostage to fast moving events around all the big geopolitical stories of the day.

We've only bedded down one full week of trading in the new year, but it feels like we've had to process a year's worth of consequential news already; most obviously the toppling of Venezuelan President Maduro, unrest in Iran and threats to Greenland's territorial integrity. There's been no let-up today, with Fed Chair Powell announcing that the Fed has been served a grand jury subpoena threatening criminal indictment. The week ahead should be no less lively when it comes to geopolitics, ongoing threats to Fed independence and the data flow. The week ahead is headlined by US Dec CPI and locally, the first read on consumer sentiment in the new year.