SYDNEY, Jan 19, 2026, 16:51 AEDT — The market has closed.
- Xero slipped 2.6% to A$100.89, hitting a 12-month low of A$98.23 earlier in the session
- Australia’s benchmark index fell 0.33%, weighed down largely by losses in IT
- Traders are eyeing tariff updates closely, while also monitoring if Xero can stay above the A$100 mark heading into Tuesday
Cloud accounting software provider Xero Ltd (XRO.AX) slipped 2.6% to close at A$100.89 on Monday, hitting a 12-month low of A$98.23 earlier in the session. The stock started the day at A$103.25 and peaked at A$103.35. Since January, shares have dropped roughly 10%, with around 889,000 shares traded, according to market data. 1
The drop followed investor retreat from risk after U.S. President Donald Trump threatened tariffs on several European countries over Greenland, raising fears of a trade war. “Markets are pricing in increased political risk premia on the U.S. dollar,” said Khoon Goh, head of Asia research at ANZ in Singapore. 2
Shocks like that usually hit “long-duration” growth stocks hard — these are shares valued based on profits far in the future. When uncertainty spikes, investors quickly reassess how much those distant earnings are really worth now.
In Sydney, the S&P/ASX 200 dropped 0.33%, weighed down by falls in IT, telecom services, and consumer discretionary sectors, according to Investing.com. 3
Australian tech stocks took a hit, with WiseTech Global falling 4.4% to close at A$64.07, hitting a low of A$63.25 during the session. 4
Xero faces a supply issue after an ASX filing on Jan. 15 revealed that 1,255,936 securities tied to its Melio acquisition were “released from voluntary escrow restrictions” and are now freely tradable. 5
A voluntary escrow means shares are locked up and can’t be sold for a specific time. Once those restrictions expire, the market often faces a sudden influx of shares, regardless of any change in the company’s fundamentals.
The Melio deal remains a key part of the debate around the stock. Last year, Xero agreed to acquire U.S.-Israeli payments firm Melio for up to $3 billion as it aimed to expand into North America, where it generated roughly 7% of its sales, Reuters reported. “There is much to like in terms of bulking up U.S. exposure,” said RBC Capital Markets analyst Garry Sherriff at the time. 6
The acquisition brings payments capabilities into Xero’s accounting software, but it raises concerns about integration challenges and added costs. Competition remains fierce, with global players like Intuit and Sage battling for the small-business market.
The next move could swing either way. Should tariff threats escalate and volatility climb, high-multiple software stocks might sell off despite solid company performance; a sustained drop below A$100 could trigger a wave of short-term selling.
Before Tuesday’s open, eyes will be on Xero to see if it can hold firm after dipping below A$100. Traders will also track new tariff developments that could weigh on global tech stocks. Xero’s next key date is its FY26 full-year results, set for May 14, as noted in an ASX release. 7
