Australian Stocks Stay Under Strain Ahead of CPI, Fed Decision

Australian equities fell 45 points, or 0.5%, to 8,666 in early Wednesday trade, marking a seventh straight session of losses and the lowest in three weeks. A weak lead from Wall Street Tuesday pressured risk appetite, as traders turned cautious ahead of the U.S. Fed’s rate decision later in the day. Locally, attention centered on Australia’s March CPI report, due today, with markets expecting inflation to hit around 4.7%, potentially the highest since the monthly series began in April 2025, amid persistent cost pressures that have built since mid-2025. Meantime, the Reserve Bank is set to hold its policy meeting next week, with bets on further rate hikes growing. Non-energy minerals, commercial services, and healthcare dragged the ASX 200, but gains in consumer durables and energy minerals helped cushion the downside. Among notable decliners were BHP Group (-2.3%), Cochlear Ltd. (-1.9%), and Westgold Resources (-1.5%). Shares of the largest four banks slipped between 0.2% to 1.2%.

The S&P/ASX 200 fell 56 points, or 0.6%, to close at 8,711 on Tuesday, marking a sixth consecutive session of losses and its lowest in near three weeks. Sentiment remained cautious ahead of Australia’s March CPI report due Wednesday, with markets expecting inflation around 4.7%, potentially the highest since the monthly series began in April 2025, on persistent cost pressures that have built since mid-2025. Investors also stayed on the sidelines before the Reserve Bank’s policy review next week. Globally, U.S. stock futures were mixed as the Fed kicks off its two-day meeting later today, while uncertainty over the Middle East conflict added another layer of caution, with traders assessing its potential impact on interest rate outlook. Losses were broad-based, led by non-energy minerals, consumer services, and retail. Aristocrat Leisure dipped 4.2%, followed by Origin Energy (-4.1%), Evolution Mining (-3.1%), and Genesis Minerals (-2.5%). Two of the four major banks also ended lower.

Australian shares fell 57 points, or 0.7%, to 8,709 in Tuesday morning trade, marking a sixth straight decline and the lowest level in three weeks. Sentiment remained cautious ahead of March inflation data due Wednesday, with markets expecting a reading of around 4.7%, potentially the highest since the report began in April 2025, amid persistent price pressures since H2 of 2025 and outside the Reserve Bank’s 2–3% target range. Traders also looked ahead to the central bank’s policy meeting next week, as economists widely anticipate another rate hike. Still, losses were capped by a modest rise in U.S. stock futures after record closes on the S&P 500 and Nasdaq Monday, as markets monitored developments in U.S.–Iran negotiations. All sectors in the ASX 200 fell, led by consumer non-durables, non-energy minerals, retail trade, and healthcare. Among notable laggards were Origin Energy (-5.5%), Ramelius Resources (-2.3%), and BHP Group (-1.0%). Three of the four major banks also traded lower.