The DXY steadied near 97.4 as a partial US government shutdown delayed key labor data, while markets still priced in two Fed rate cuts despite earlier support from a potential Warsh Fed nomination. US stocks held weak after tech-led losses, the trade deficit widened sharply in November on higher imports and weaker exports, and renewed US–Iran tensions plus bitcoin weakness increased demand for gold, silver, and oil as investors rotated away from growth stocks.

Budget talks remain stuck over spending priorities, border policy, defense, and social programs. 

The Reserve Bank of Australia delivered its first interest rate increase since 2023, lifting the cash rate by 25 basis points to 3.85% at its opening policy meeting of 2026. The decision, which was unanimous and widely expected by markets, effectively reverses part of last year’s easing cycle and signals a renewed focus on inflation risks.