Australian Financial Review: ASX to slip after Wall St turns lower late

“Corpay currency strategist Peter Dragicevich said he thinks “annual inflation risks re-accelerating by more than estimated”.

Dragicevich also said the pending price data and Thursday’s retail sales – which he sees bolstered by the Taylor Swift and Pink concert tours, and the extra trading day due to the leap year – could provide the currency with support by encouraging more patient policy.

“In our judgement, a positive batch of Australian data could bolster expectations the RBA is set to lag its peers in terms of when it starts and how far it goes during the looming global interest rate cutting cycle. We believe the diverging policy outlook between the RBA and others, and shift in short-dated yield differentials, should be AUD supportive over time. Particularly as sentiment towards the AUD and market positioning remains quite negative.”

Read the article in the Australian Financial Review here: https://www.afr.com/markets/equity-markets/asx-to-edge-higher-in-line-with-wall-street-cpi-in-focus-20240227-p5f80g