Aussie Markets Wavers as Investors Seek Fresh Catalysts 

On Monday, February 26th, the S&P/ASX 200 Index saw an increase of 0.12% to conclude at 7,653, making it the third successive gainful session. This growth followed a worldwide stock market rally. Positive sentiments enveloped the tech stocks all over the globe when Nvidia, a semiconductor giant, released quarterly results last week that surpassed expectations. 

The rise on Monday was led by some of the biggest financial and consumer stocks in Australia, with Commonwealth Bank gaining 1%, Westpac Banking adding 0.4%, Macquarie Group up by 0.6%, Wesfarmers soaring 1.8%, and the Woolworths Group increasing by 0.3%. Other significant index constituents like Pilbara Minerals (increased by 5.7%), CSL Ltd (gained 0.7%), and Xero (up by 2.1%) demonstrated substantial growth too.  

In business news, Superloop, a network infrastructure provider, experienced a dramatic surge of 14.3% as rival broadband retailer Aussie Broadband made an AUD$466.6 million acquisition proposal. However, Superloop investors rejected the takeover bid after the trade session.  

(ASX 200 Index Yearly Chart) 

The Australian dollar has gently declined beneath $0.656, backing away from peak values seen in the past three weeks, as uncertainties arise prior to a local inflation check that could affect the future decisions of the Reserve Bank of Australia (RBA). It is predicted that Australia’s inflation rate will slightly pick up to 3.5% in January, compared to 3.4% in December. However, a higher-than-expected outcome could lead to renewed speculation for another increase in interest rates by the RBA.  

The minutes from the RBA’s recent session showed that the possibility of higher rates was under consideration during its February policy meeting. However, it chose to keep the current financial conditions in place due to indications of marginally moderated inflation. It was further implied by the RBA that it would wait for additional evidence to ensure that inflation is tending towards its intended goal before dismissing any possible future rate hikes. 

(AUDUSD One-month Chart) 

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