The Australian dollar depreciated past $0.662 per US dollar, marking its fourth consecutive session of losses as investors weighed weak economic data. The Westpac-Melbourne Institute Consumer Sentiment Index slumped by 9% month-on-month in December 2025, sliding back below the 100 mark after briefly returning to positive territory in the previous month. Inflation emerged as the primary concern, with Westpac noting that consumer price index readings have exceeded expectations for roughly four consecutive months. This persistent price pressure has contributed to heightened caution among consumers regarding interest rates, particularly after the Reserve Bank of Australia indicated last week that it is likely done cutting rates. Meanwhile, flash data showed the Composite PMI dipping to a seven-month low of 51.1 in December. Growth in the services sector slowed to 51 from 52.8, while manufacturing activity showed modest improvement, rising to 52.2 from 51.6.
