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The Australian Securities Exchange (ASX) enters a critical seasonal phase as markets adjust for Christmas 2025 and New Yearโs Day 2026. On December 24, 2025, the ASX observed an early close at 2:10 PM AEDT, a move that traditionally reduces liquidity and increases short-term volatility.
For investors, early closures and public holidays introduce holiday settlement risks, particularly for derivatives, FX-linked equities, and international portfolios. With Christmas Day (December 25) and New Yearโs Day (January 1, 2026) fully closed, market participants are urged to plan trades carefully to avoid settlement mismatches and price gaps when trading resumes.
On December 24, the ASX experienced light volumes, a common feature of holiday trading. Thin liquidity amplified reactions to global commodity moves and currency shifts, making intraday swings sharper than usual.
Despite reduced participation, several sectors showed strong directional conviction particularly resources, defense technology, and select consumer names.
The Australian dollar (AUD) jumped to its strongest level in 14 months, supported by
A stronger AUD generally pressures exporters but boosts import-heavy sectors and helps ease inflationary pressures. Currency strength also played a role in shaping investor positioning across equities and commodities during the shortened trading week.
While precious metals soared, the broader ASX slipped during parts of the session, reflecting sector rotation rather than broad risk-off sentiment.
Mining stocks tied to precious metals outperformed, while sectors sensitive to higher input costs faced pressure.

DroneShield Limited (ASX:DRO) emerged as a standout performer following confirmation of a new $6.2 million Asia-Pacific military contract.
Analysts see DroneShield positioned for structural growth heading into 2026, supported by:
Despite holiday disruptions, the ASX finished the week up 1.6%, driven by strong gains in select sectors:
This weekly performance signals underlying resilience, even as macro uncertainty persists.
Looking ahead, investors will focus on several key drivers:
Expect markets to remain sensitive to signals from major central banks, particularly around rate cuts in 2026.
The Australian dollarโs strength could persist, but any sharp reversal in the US dollar or commodity prices may trigger fast repositioning.
Defense stocks like DroneShield may continue attracting inflows as security risks remain elevated globally.
Gold and silver momentum suggests continued interest in inflation hedges and safe-haven assets.
ltas Opinion Strategic Calm Amid Seasonal Noise
Altas View
The ASXโs holiday-period movements should not be mistaken for a trend reversal. Thin liquidity exaggerates price action, but the 1.6% weekly gain and sector-specific strength point to measured optimism heading into 2026.
Defense technology, lithium, and selective consumer exporters remain compelling themes. However, investors should remain cautious around early January volatility, as deferred reactions to global data often surface once full liquidity returns.
Q1: Is the ASX open on Christmas Day 2025?
No. The ASX is fully closed on December 25, 2025.
Q2: Why does the ASX close early on December 24?
Early closures reduce operational risk during the holiday period but often lead to lower liquidity and higher short-term volatility.
Q3: Why are gold and silver hitting record highs?
Safe-haven demand, geopolitical uncertainty, and expectations of future rate cuts are driving precious metals higher.
Q4: Is DroneShield a long-term investment story?
DroneShieldโs growing defense contracts and governance improvements support a positive long-term outlook, though defense stocks can be volatile.
Q5: Will the Australian dollar remain strong in 2026?
AUD strength depends on commodities, global growth, and US dollar trends. Volatility is likely to persist.
As Christmas 2025 draws to a close, the ASX is navigating holiday-thinned markets with surprising resilience. Strong sector rotation, defense contract wins, and a surging Australian dollar suggest that 2026 could open with cautious optimism provided global risks remain contained.

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