Australian shares are poised to open lower, amid modest weakness in New York as the rally from April’s lows lost momentum pending Tuesday’s US July consumer prices report.
President Donald Trump signed an executive order to extend a tariff truce with China for another 90 days, according to CNBC. Trump earlier said gold imports to the US will not be hit by tariffs.
Results scheduled for Tuesday are: Life360, SGH and Seven West Media. For more details see our reporting season calendar.
The US CPI report is expected to show that President Donald Trump’s embrace of tariffs continues to bleed into prices for goods, offset in part by lower petrol prices.
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ASX 200 futures are pointing down 17 points or 0.2 per cent to 8779.
All US prices near 2.30pm New York time.
The RBA is widely expected to cut the cash rate target by 25 basis points to 3.60 per cent at its Tuesday policy meeting. The policy decision will be released at 2.30pm, as well as the latest Statement on Monetary Policy.
Governor Michele Bullock is scheduled to hold a press conference starting at 3.30pm.
eToro market analyst Farhan Badami: “While the July [RBA] pause was a surprise, a consecutive pause in August will be a shock. Three cuts before the end of the year are still expected, but there’s very little wiggle room left in the calendar if the RBA heightens its degree of risk aversion any further.”
Earlier, at 11.30am, NAB will release its July business confidence and conditions survey.
Later in the day, at 10.30pm, the US will release its July CPI report. Yardeni Research: “The odds are low that we’ll see downside surprises in July CPI inflation data. There’s little doubt that tariff effects are boosting durable goods inflation, as they did in June. But the risk of a big upward surprise is tempered by signs that rents and used car prices are cooling. The Cleveland Fed’s Inflation Nowcasting model has the CPI rising 3.04 per cent in July and 3.02 per cent in August. Those would be considered too hot to justify Fed easing.”
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