Market Outlook February 2026

The Westpac February 2026 report highlights a hawkish turn for the RBA and RBNZ amid inflation persistence, contrasting with a broader global pivot away from USD-denominated assets and towards tech-driven Asian equities.

Key Takeaways

• 1.The Reserve Bank of Australia (RBA) pivoted to a hawkish stance with a 25bp hike in February and another expected in May due to persistent inflation surprises.
• 2.A global pivot away from US dollar-denominated assets ('de-dollarisation') is driving the USD to near 4-year lows while pushing gold to record highs.
• 3.Investment in Asia is increasingly bifurcated between tech-focused economies (South Korea) benefiting from AI infrastructure and services-oriented economies (India, Philippines) seeing outflows.

Table of Contents

• Australia
• The World
• Summary forecast tables
• Australian Markets
• Australian Economy
• Commodities
• Global FX
• New Zealand
• China
• United States
• Asia
• Europe & UK

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