Category: 3. Business

AUD/USD posts strongest weekly gain since 2025

AUD/USD closed last week higher at 0.6896, posting a robust 3.19% weekly gain – its strongest since the 4.14% rally from the Liberation Day low of 0.5912 in early April 2025.

Last week’s gains were fuelled by exceptionally strong December employment data, which lifted market-implied odds of a Reserve Bank of Australia (RBA) rate hike at next week’s board meeting to around 60%.

Further tailwinds came from buoyant global risk sentiment, surging commodity prices, and a broader US dollar (USD) pullback following recent geopolitical drama regarding Greenland. The latter has potentially encouraged increased foreign hedging of US assets due to reduced confidence in the current US administration.

Super funds eyeing hedging shifts

Locally, the subject of foreign exchange (FX) hedging by Australian super funds has gained attention following reports that Australian Retirement Trust (ART), the nation’s second-largest fund (managing approximately A$353 billion), is considering higher FX hedging ratios on its offshore holdings.

Traditionally, super funds hedge only 20% – 30% of their approximately A$4.4 trillion to A$4.5 trillion in assets, roughly half of which is invested overseas. This low ratio provides a natural cushion; during periods of risk aversion, the Australian dollar (AUD) traditionally falls, helping to offset portfolio losses on foreign assets.

If Australian super funds do lift their FX hedges, it would reduce that cushioning effect – hence the caution. However, if more funds follow suit, it could deliver meaningful additional support for the high-flying AUD/USD.

Looking ahead, AUD/USD’s near-term trajectory will hinge on evolving geopolitical headlines – which appear to be flowing freely at this point – as well as tomorrow’s fourth quarter (Q4) inflation report.

Q4 CPI

Date: Wednesday, 28 January at 11.30am AEDT

In the third quarter (Q3) 2025, headline consumer price index (CPI) rose by 1.3%, accelerating from the 0.7% increase in the second quarter (Q2). This pushed the annual headline inflation rate higher to 3.2%, up from 2.1% in Q2 – the lowest since March 2021 – marking the highest quarterly rise since March 2023, largely driven by housing (electricity +9.0% due to price reviews and rebate timing), recreation/culture, and transport.

The RBA preferred measure, the trimmed mean, increased to 3.0% year-on-year (YoY), up from 2.7% in Q2. This represented the first rise in annual trimmed mean inflation since December 2022, signalling a reversal of the prior downward trend.

Since the Q3 CPI release, inflation has continued to show upside pressures. The transition to complete monthly CPI data revealed headline inflation peaking at 3.8% in October before easing to 3.4% in November, while the trimmed mean edged up to 3.3% in October before dipping slightly to 3.2% in November.

These firmer prints prompted hawkish RBA commentary and a shift towards expectations of RBA rate hikes in 2026, further reinforced by last week’s unexpectedly strong labour force report for December.

Expectations for Q4

The Q4 CPI is expected to show headline inflation rising by 0.6%, lifting the annual rate to 3.6%. The core measure, the trimmed mean, is expected to rise by 0.8% quarter-on-quarter (QoQ) for an annual rate of 3.2%, in line with the RBA’s forecast.

Implications for the RBA

A downside surprise of 0.7% in the trimmed mean would potentially open the door for the RBA to remain on hold at its meeting next week.

Conversely, a trimmed mean quarterly print of 0.9% or higher would likely see a 25 basis point (bp) rate hike at next week’s meeting.

Ahead of the Q4 inflation report, the Australian interest rate market is pricing in a 60% chance of a 25 bp rate hike at next week’s meeting. Looking further out, a full 25 bp hike is priced in by May, with a cumulative 50 bp of tightening priced in for 2026.

AU all groups CPI and trimmed mean chart

By Dharamraj Dhutia and Nimesh Vora

MUMBAI, Jan 27 (Reuters) – A heavily pressured Indian rupee steps into a week in which the U.S. Federal Reserve is scheduled to deliver its first policy decision of the year, while local government bonds ​are seen supported in the run-up to the country’s annual budget.

The rupee declined about 1.2% last week in its steepest ‌fall in six months, after touching an all-time low of 91.9650.

Equity outflows picked up pace through last week, while importer hedging was higher relative to exporters amid expectations ‌of further depreciation taking hold. The breach of the 91 per dollar level drew in additional speculative interest, amplifying dollar demand.

“With these pressures unlikely to fade in the near term, the rupee’s downside bias should remain firmly in place this week,” said Kunal Kurani, vice president, Mecklai Financial.

Beyond flows, the rupee will have to navigate two key events in the week, beginning with the Fed’s policy decision on Wednesday.

While no change in interest ⁠rates is expected, traders will parse the Fed ‌statement and Chair Jerome Powell’s press conference for signals on the timing of future cuts, if any.

India’s annual budget is scheduled for Sunday, though traders expect limited pre-emptive positioning in the currency.

Meanwhile, in a positive ‍for the rupee this week, India and the European Union concluded negotiations on a long-coveted trade deal, an accord both sides hailed was historic amid strained U.S. ties.

BONDS

The 10-year benchmark 6.48% 2035 yield settled at 6.6635% on Friday, notching a marginal decline, after rising for the previous three weeks as supply ​outpaced demand.

Traders expect the yield to move in a 6.61%–6.70% range this week.

Bonds could see a positive start after the RBI announced ‌yet another liquidity infusion plan, as it will buy bonds worth 1 trillion rupees and conduct a $10 billion swap in February.

The market would look for hints from the government to address the worsening demand-supply scenario.

In focus will be the gross borrowing announcement and whether New Delhi plans to raise net issuances of treasury bills.

A Reuters poll has pegged the gross borrowing at a record 16.27 trillion rupees for the next financial year, with Nomura expecting the figure to be 17.5 trillion rupees.

“On the fiscal front, we see the consolidation continuing, although ⁠at a lesser pace, and expect FY27 fiscal deficit to be pegged at ​4.25% – 4.30%,” Vikas Garg, head of fixed income at Invesco Mutual Fund.

“The market ​will closely watch the funding pattern of fiscal deficit, and we expect an increased proportion of small saving schemes and T-bill issuance for FY27.”

Still, there could be some pressure as states are set to borrow nearly 400 ‍billion rupees via bond sale, while ⁠New Delhi will auction the benchmark paper for 320 billion rupees on Friday. KEY EVENTS:

India ** December industrial output – January 28, Wednesday (4:00 p.m. IST)

** December fiscal deficit – January 30, Friday (3:30 p.m. IST) U.S. ** January consumer confidence – January 27, Tuesday (8:30 p.m. IST) ** Federal Reserve ⁠monetary policy decision – January 29, Thursday (12:30 a.m. IST)

** November international trade – January 29, Thursday (7:00 p.m. IST) ** Initial weekly jobless claims for week to January 24 – January 29, ‌Thursday (8:30 p.m. IST)** November factory orders – January 29, Thursday (8:30 p.m. IST)

** December PPI machine manufacturing – January 30, Friday (7:00 p.m. ‌IST)

(Reporting by Dharamraj Dhutia and Nimesh Vora; Editing by Harikrishnan Nair)

Next year may prove a turning point for the oilfield services sector, Baker Hughes says.

A further reduction in idled Opec supplies as well as more constructive supply and demand balances will be needed for that to take place.

“That inflection is likely a 2027 catalyst for the sector, and may mark the beginning of an upcycle,” chief executive officer Lorenzo Simonelli told analysts on a conference call Monday.

As a result, the company anticipates global upstream spending will see “low single digit declines” this year. Meanwhile, oil and gas spending is expected to decline at a “mid-single digit rate” in North America as producers maintain capital discipline and preserve inventory.

Baker Hughes said improved orders at its business that houses power systems and LNG helped more than offset continued “macro-driven softness” in oilfield services.

The company’s industrial & energy technology (IET) business reported strong fourth-quarter bookings of $4bn, contributing to a record $14.9bn for full-year 2025 and surpassing the high end of guidance.

“We expect IET orders to remain at robust levels, supported by continued momentum in LNG, a strong year of FPSO (floating production, storage and offloading ) and gas infrastructure awards and sustained strength for power systems,” Simonelli said after posting fourth-quarter results.

The company expects to book about $3bn of data center-related orders between 2025 and 2027.

Profit fell to $876mn in the fourth quarter from $1.2bn in the same quarter of 2024. Revenue held steady at $7.4bn.

By Stephen Cunningham

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Reference is made to the stock exchange release published earlier today, January 26, 2026, concerning the employee and manager share purchase programs and matching share allocations. For the matching share allocations, shares were sold at a price per share of NOK 32.9908 which equals the volume-weighted average share price of Aker Solutions on Euronext Oslo Børs from and including January 19, 2026, to and including January 23, 2026. 

Under the matching share allocation, a total of 7,655 shares were allocated to Idar Eikrem, Chief Financial Officer. Following the allocation, Eikrem, together with related parties, hold 399,380 shares in Aker Solutions. 

Under the matching share allocation, a total of 15,741 shares were allocated to Kjetel Digre, Chief Executive Officer. Following the allocation, Digre holds 238,960 shares in Aker Solutions. 

Under the matching share allocation, a total of 4,679 shares were allocated to Geir Glømmi, Executive Vice President, Fixed Facility Alliance Projects. Following the allocation, Glømmi holds 25,501 shares in Aker Solutions. 

Under the matching share allocation, a total of 1,775 shares were allocated to Kjetil Kristiansen, Executive Vice President, People and Transformation. Following the allocation, Kristiansen holds 15,892 shares in Aker Solutions. 

Under the matching share allocation, a total of 1,775 shares were allocated to Hilde Karlsen, employee elected director. Following the allocation, Karlsen, together with related parties, hold 35,671 shares in Aker Solutions. 

Under the matching share allocation, a total of 5,406 shares were allocated to Olav Høidalen, Senior Vice President, Group Controlling. Following the allocation, Høidalen holds 37,681 shares in Aker Solutions. 

Under the matching share allocation, a total of 1,775 shares were allocated to Thomas Halleraker, deputy employee elected director. Following the allocation, Halleraker holds 6,035 shares in Aker Solutions.  

Please see the attached notification for persons discharging managerial responsibilities in Aker Solutions in accordance with Regulation EU 596/2014 (MAR) article 19.  

Strategic partnership aims to advance next-generation satellite solutions for Korea’s national defence infrastructure

BRAMPTON, ON and GUMI-SI, GYUNGSANGBUK-DO, Republic of Korea, Jan. 26, 2026 /PRNewswire/ – MDA Space (TSX: MDA), a trusted mission partner to the rapidly expanding global space industry, today announced the signing of a Memorandum of Understanding (MOU) with Hanwha Systems Co., Ltd. (“Hanwha”), a global leader in smart technologies and aerospace solutions. Through this MOU, MDA Space and Hanwha will explore opportunities to collaborate on the development of Korea’s sovereign Low Earth Orbit (K-LEO) defence constellation, leveraging MDA’s AURORA™ software-defined digital satellites.

The K-LEO constellation is a flagship national initiative designed to strengthen Korea’s sovereign defence capabilities and ensure secure, resilient communications and data services for national security operations. MDA Space and Hanwha will work together to assess how MDA AURORA’s flexible, software-defined architecture can support Hanwha in addressing evolving mission requirements, maximizing operational efficiency, and enabling robust, scalable satellite solutions for the K-LEO defence program.

“We are honoured to partner with Hanwha in support of Korea’s sovereign K-LEO defence constellation,” said Mike Greenley, CEO of MDA Space. “This collaboration highlights the global confidence in MDA AURORA’s secure dual-use software-defined satellite technology to deliver mission-critical flexibility, performance, and resilience for national defence networks. Together with Hanwha, we look forward to advancing Korea’s defence infrastructure and enabling a new era of secure connectivity.”

“This MOU marks an important first step in exploring collaboration with a global partner to advance Korea’s defence space capabilities,” said Jae-il Son, CEO of Hanwha Systems. “We will continue to assess next-generation satellite solutions capable of addressing evolving operational requirements.”

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the company’s current expectations regarding future events. Such forward-looking information includes, but is not limited to, the scope of any actual collaboration between MDA Space and Hanwha on the eventual development of a K-LEO constellation.

Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the company’s Annual Information Form available on SEDAR+ at www.sedarplus.com. MDA Space does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT MDA SPACE
Building the space between proven and possible, MDA Space Ltd. (TSX:MDA) is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 3,800 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that’s been in our DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we’ll take you there. For more information, visit www.mda.space.

ABOUT HANWHA SYSTEMS Hanwha Systems is a leading South Korean defence and ICT company specializing in advanced radar, command and control, satellite, and defence electronics solutions. Leveraging strong systems integration capabilities and cutting-edge technologies, the company supports national security and global defence programs across land, sea, air, cyber, and space domains.

SOURCE MDA Space