Xero shares rebound 3.5% ahead of Australia Day break as rate bets swing

Sydney, Jan 23, 2026, 17:06 AEDT — Market closed.

Xero rebounded, climbing 3.5% to A$101.22 after slipping for two days
Stronger jobs numbers intensified the rate-hike debate; attention now turns to next week’s CPI report
ASX cash market closes Monday for Australia Day; trading picks back up Tuesday

Xero Limited (ASX: XRO) shares climbed 3.5% to finish at A$101.22 on Friday, ending a two-day losing streak for the accounting software company. The stock fluctuated between A$98.45 and A$102.99, with roughly 1.43 million shares changing hands. This follows declines of 5.15% on Wednesday and 1.15% on Thursday. (Investing)

Investors are recalibrating interest-rate risk once more, a key factor hitting growth stocks. Data released Thursday revealed Australia’s unemployment rate dropped to 4.1% in December, with employment climbing roughly 65,000. That sparked fresh bets the Reserve Bank of Australia (RBA) might hold firm on inflation. (Australian Bureau of Statistics)

BetaShares chief economist David Bassanese said the jobs report “does not guarantee a Reserve Bank interest rate hike.” IG market analyst Tony Sycamore cautioned, “While monthly labour force data can be volatile and subject to noise,” as traders await the consumer price index (CPI) — the key inflation measure — set for Wednesday, Jan. 28 at 11:30am AEDT. (Financial Standard)

Traders have a pause to consider the move. The ASX cash market closes Monday, Jan. 26, for Australia Day and will resume trading Tuesday. (Australian Securities Exchange)

Australian shares edged up on Friday, the S&P/ASX 200 adding 0.13%. Technology stocks outpaced the rest, climbing 2.1% by the close. (ABC)

In Asia, risk appetite held steady following the Bank of Japan’s decision to keep rates unchanged, shifting investor attention to upcoming global policy shifts. (Reuters)

Other local software stocks edged higher. TechnologyOne finished up roughly 2.5%, while WiseTech Global gained around 0.5%, both helping to lift the tech sector after recent weakness. (MooMoo)

Xero, which offers subscription-based accounting and payroll software to small businesses and advisers, often sees its valuation fluctuate with shifts in rate expectations. The company has set May 14, 2026, as the date for its FY26 full-year results. (ASX Announcements)

Friday’s bounce offers little comfort. A hotter-than-expected CPI reading might strengthen the argument for tighter policy, sending bond yields up — a typical drag on high-multiple software stocks.

Trading picks up again Tuesday in Sydney, with Australia’s CPI numbers due Wednesday. Across the globe, the U.S. Federal Reserve is set to meet Jan. 27-28, a key event for global interest rate expectations. (Federalreserve)

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