Just noticed the Australian dollar keeping its momentum into another session, sitting around the 0.7120 level. Seems like there's been a bit of a mood shift in the market lately. Word is Trump's team is talking about resuming Iran negotiations this week, and apparently Vance mentioned some meaningful progress from the Pakistan round of talks. That kind of thing tends to ease geopolitical tensions and gives traders a bit more confidence.

On the domestic front though, the RBA's deputy governor was pretty candid about the headwinds Australia's dealing with. Energy crisis tied to Middle East stuff, inflation still sticky - he basically flagged that we could be looking at a stagflation scenario if this drags on. Not exactly uplifting commentary.

What's interesting is the US inflation data came in softer than expected yesterday. PPI only ticked up 0.5% month-on-month when they were looking for 1.2%, and core was basically flat at 0.1%. That kind of cooling could mean the Fed isn't as trigger-happy on more rate hikes. When US inflation pressure eases, it usually supports risk appetite and commodity-linked currencies like the Australian dollar. So that's probably helping the pair hold these levels too.