Australia shares choppy in early trade, inflation and employment data in focus

Australian shares drifted without clear direction on Tuesday, as modest gains in financials and miners were not enough to offset losses in energy and consumer stocks, while investors were cautious ahead of a data-heavy week.

The S&P/ASX 200 index was flat at 8,814.50 by 0014 GMT.

The benchmark closed 0.1% lower on Monday. Investors held their nerve ahead of a busy week of economic data, with inflation and employment data due on Wednesday and Thursday, respectively.

RBA Deputy Governor Andrew Hauser is also expected to speak on Wednesday, when markets will watch for comments on the inflation outlook.

Although the Reserve Bank of Australia paused its tightening cycle in June after three consecutive rate hikes, it warned that another increase could be needed if inflation requires further control.

Miners rose 0.3%, as BHP snapped three successive sessions of losses to add 0.9%, while Rio Tinto and Fortescue also gained around 0.9% each.

Iluka Resources surged as much as 5.8% at the open after announcing a confirmation of an A$1.65 billion ($1.15 billion) loan from the country’s export credit agency, but was last trading in the red.

Gold miners dropped 1%, weighed down by declines of 0.9% and 1.7% in Evolution Mining and Northern Star Resources, respectively. Financials added 0.2%, with Commonwealth Bank of Australia, NAB, and Westpac rising between 0.2% and 1.2%.

Energy stocks shed 0.2%, after oil prices slid 3% overnight on signs of tangible progress in the Middle East deal.

In the first major step under the nascent US-Iran peace deal, Washington lifted sanctions on Iranian oil sales on Monday, while traffic through the Strait of Hormuz picked up, easing concerns that the fragile peace process was faltering. In New Zealand, the benchmark S&P/NZX 50 index rose 0.4% to 13,500.26.