AUD/USD surges as CPI data boosts RBA February rate hike expectations

AUD/USD has strengthened sharply following persistent Australian inflation data that exceeded expectations, with the pair gaining momentum above 0.6300. The latest CPI figures show inflation remains stubbornly elevated, prompting three of Australia's four major banks to forecast a 25 basis point RBA rate hike in February. Westpac analysts specifically noted that inflation data delivers the 'casting vote' for the upcoming policy decision. Meanwhile, broader risk sentiment remains positive despite geopolitical concerns, with Goldman Sachs observing elevated investor risk appetite. The technical picture shows AUD/USD breaking above key resistance at 0.6280, with next targets at 0.6350 and 0.6400. Support has formed at 0.6250. The diverging monetary policy outlook between the RBA's potential tightening and other major central banks could provide further tailwinds for the Australian dollar in coming sessions.