U.S. manufacturing activity expanded in January 2026 at its fastest pace since 2022. The Institute for Supply Management, ISM, manufacturing index rose to 52.6, indicating growth in new orders and higher production. This expansion followed nearly a year of contraction in the sector. Input prices increased and demand remained strong. The employment index also improved, although employment remains in contractionary territory. However, concerns persist regarding the impact of trade tariffs and high input costs on the sustainability of this trend.

The Reserve Bank of Australia became the first major central bank in 2026 to raise interest rates, increasing the rate from 3.6 percent to 3.85 percent. This decision was aimed at containing persistent inflation, which remains above the target range of 2 to 3 percent. Although the bank’s governor refrained from outlining a clear future path for rates, today’s move signals policymakers’ concerns about sustained inflationary pressures in the Australian economy. During the session, the Australian dollar strengthened following the hawkish stance of Governor Bullock.

According to Axios, nuclear talks between Iran and the United States are scheduled to be held on Friday in Oman. The meeting, which was initially planned to take place in Turkey, was moved to Oman at Iran’s request. The talks could play a decisive role for the region and Iran’s economy. Despite news of the negotiations, domestic markets appear to remain skeptical about their outcome.

New Zealand’s labor market showed signs of momentum in the final quarter of the year, but despite this, the unemployment rate rose to 5.4 percent, marking the highest level in a decade. The increase in unemployment occurred despite strong job growth, as the labor force participation rate rose to 70.5 percent. These data were in line with central bank expectations, and markets are pricing in an interest rate hike toward late 2026.