Australian Market Highlights (Week of February 9-13, 2026)

1. AUD breaks through: expectations of reaching 0.75 against USD

The Australian dollar (AUD) has been experiencing a strong upward trend since January 2026, officially surpassing the 71.75 cent USD mark last Thursday (February 12). This is the highest exchange rate since February 2023, contributing to a 7% increase over the past month.

The main impetus behind this upward trend comes from the Reserve Bank of Australia's (RBA) interest rate hike policy, which announced an increase in interest rates from 3.60% to 3.85% on February 5th. The primary goal of this rate hike is to combat inflation and stabilize prices. Experts believe the RBA may continue to raise interest rates in the near future. This is the reason why Australia is attracting foreign capital, pushing the AUD above 71 cents.

The areas immediately affected include:

- The retail and consumer sectors will see people tightening their spending. The current consumer confidence index is at a record low, indicating that Australians are being cautious about spending.

- The real estate market is facing challenges due to high interest rates, which reduce people's ability to borrow capital, leading to decreased purchasing power and the risk of distressed sales.

- Exports: A strong domestic currency will make Australian exports more expensive in international markets, reducing their competitiveness compared to rivals. At the same time, profit margins for export companies receiving payments in USD will narrow when currency conversions occur.

However, this presents an opportunity to attract foreign capital into the financial market thanks to attractive interest rates.

2. Australian stocks plunge amid pressure over the impact of AI.

The Australian stock market experienced significant volatility last week. At the beginning of the week, positive first-quarter 2026 earnings results from several major companies in the banking and energy sectors, such as Westpac, Commonwealth Bank, and Origin Energy, led to a spectacular recovery (a total increase of over 3%) after the sharp decline at the end of the previous week. However, Friday morning's trading session ended the rally as the S&P/ASX index fell by more than 1%, reflecting investor concerns about the impact of artificial intelligence (AI) on traditional business models. Technology led the decline with a 5% drop, followed by the financial sector at 0.7%, and mining due to weakening commodity prices.

3. Australia and New Zealand sign new standards agreement: Boosting trans-Tasman trade.

Australia and New Zealand have officially announced a new cooperation agreement, effective from January 1, 2026, aimed at synchronizing standards to help businesses in both countries reduce costs and operate more efficiently in the digital age. This agreement builds upon the existing Mutual Recognition Agreement (MRA) between the two countries, with the core objective of creating a unified set of safety and quality standards, consistent with international regulatory frameworks, thereby enhancing the competitiveness of goods and services from both countries globally.

The newly signed agreement brings tangible benefits to businesses in both countries, including:

- Enhance consistency in regulatory frameworks;

- Supporting digital commerce;

- Strengthening the application of international standards to promote trade and enhance competitiveness.

In addition, this agreement also: (i) Eliminates commissioning fees for New Zealand industries participating in the development of common Australian-New Zealand standards; (ii) Supports existing efforts to further strengthen trans-Tasman cooperation.

Overall, the signing of the new agreement between the two countries, aimed at deepening trans-Tasman economic cooperation through common standards, will help businesses save thousands of dollars in inspection and compliance costs each year, and it will also be an important leverage for Australia and New Zealand to cope with the fluctuations of global supply chains.

4. Australia spends $1.2 billion to establish a Strategic Mineral Reserve.

Last January, the Australian government announced a budget of US$1.2 billion to establish a Critical Minerals Strategic Reserve. This is a crucial step to ensure the supply of essential materials for the economy and national security.

In the initial phase, the stockpile will focus on three groups of materials that are critically important to clean energy, high technology, and the defense industry, including:

- Antimony: an essential component in storage batteries, night vision devices, and high-performance flame-retardant materials.

- Gallium: the main raw material for advanced semiconductors used in radar and telecommunications systems.

- Rare earth elements: used to produce high-power permanent magnets – extremely important components for MRI machines, fighter jets, and wind turbines.

The $1.2 billion capital structure includes $1 billion for commercial transactions, drawn from the expanded $5 billion Strategic Minerals Fund, and $185 million for selective mineral reserves and operational costs. The Reserve's operating mechanism will secure ownership rights to minerals produced in Australia, then resell these rights to meet market demand. This model will promote the development of key mineral sectors while strengthening the supply chain for export partners.

At the same time, the Reserve will support Australia's collaboration with international partners to diversify the supply chain of essential minerals, including: the United States, Japan, South Korea, Europe, Canada and the United Kingdom.

Source: https://moit.gov.vn/tin-tuc/diem-tin-noi-bat-thi-truong-uc-tuan-tu-09-13-02-2026-.html