In December, Australia experienced an increase in full-time employment, with the number rising to 54.8K. This marked an upward shift from a previous decline of -56.5K.
The rise in full-time employment catches attention amid various global currency movements, including USD/INR holding gains, the Japanese Yen’s decline, and GBP/JPY’s increase. These movements align with broader financial trends, including UK inflation impacting GBP/USD and the performance of the cryptocurrency market.
Gold Decline And Cryptocurrency Market
Meanwhile, other significant economic activities include gold’s decline due to reduced safe-haven demand. Additionally, certain altcoins have displayed recovery in cryptocurrency markets, nearing key resistance levels as selling pressures decrease.
Market conditions on the preceding Wednesday showed assets gaining uniformly, with stocks, bonds, gold, cryptocurrencies, and crude experiencing rises. Axie Infinity extended gains by 8% in response to increased whale accumulation volume.
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Australia’s Job Market Impact On RBA
The massive swing in Australia’s full-time employment for December 2025, from a loss of over 56,000 to a gain of nearly 55,000, signals a surprisingly robust labour market. We see this as a game-changer for the Reserve Bank of Australia (RBA), significantly increasing the odds of a hawkish policy stance in the coming months. This challenges the market’s previous assumptions of a cooling economy.
This strong jobs report follows the Q4 2025 inflation data, which recently came in at 3.1% and put underlying price pressures back on the RBA’s radar. With both employment and inflation running hot, derivatives pricing for RBA rate cuts in 2026 now looks misaligned. We believe traders should consider selling Australian bond futures or buying options that profit from higher short-term interest rates.
The policy divergence between central banks is becoming more pronounced, especially against the Bank of Japan, which is maintaining its dovish position. This makes long AUD/JPY one of the most compelling trades, and we would look at call options to capitalize on the expected upward move. The yen’s weakness, combined with a newly strengthened Aussie dollar, presents a clear opportunity.
Historically, we saw a similar dynamic in 2022 when strong employment data preceded aggressive central bank tightening, causing significant currency swings. With iron ore prices also stabilizing above $130 per tonne in early January 2026, the fundamental case for Australian dollar strength is solidifying. Therefore, traders should also prepare for increased volatility in AUD/USD, making strategies like options straddles attractive.
