The ASX 200 index has experienced a decline, ending a three-day winning streak following the release of third-quarter inflation data.
This has led to a delay in projected interest rate cuts by the Reserve Bank of Australia (RBA) until 2025. The trimmed mean inflation measure recorded a quarterly increase of 0.8% but a decrease in the annual rate from 4.0% to 3.5%. Factors influencing the inflation trends include declines in electricity and automotive fuel prices.
Despite positive inflation rates, the strong labor market has complicated the RBA's decision-making process. Woolworths has faced a drop in share price due to a downgrade in earnings forecast and a dispute with the Australian Competition and Consumer Commission (ACCC).
From a technical perspective, the ASX 200 is consolidating below a multi-month trend channel resistance and above critical support levels. The interplay between inflation data, interest rate expectations, and corporate earnings will shape the ASX's trajectory.