The Australian Dollar (AUD) remains resilient against the US Dollar (USD) despite disappointing economic data from Australia. Private Capital Expenditure declined by 0.2% quarter-on-quarter in Q4 2024, missing market forecasts of 0.8% growth, as shown in the chart below. This downturn followed a 1.6% expansion in the previous quarter. However, the AUD maintains strength, supported by remarks from Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser. He expects inflationary pressures to ease but emphasizes that progress must be confirmed before policy adjustments. The tight labor market remains challenging, adding uncertainty to inflation control efforts.