Australian shares inched higher on Friday, but were poised for their worst week since late October as caution prevailed ahead of a key domestic inflation report that could provide clues on the central bank’s next moves.
The S&P/ASX 200 index edged 0.1% higher to 7,503.70 by 0018 GMT.
The benchmark has declined 1.1% so far this week after five straight weekly gains.
The country’s monthly inflation report for November, due next week, will be a key indicator for market participants to gauge the Reserve Bank of Australia’s (RBA) monetary policy decisions for the year ahead.
The RBA is likely to start easing its monetary policy as soon as May or June, even if the central bank has a nominal tightening bias.
Globally, market participants tempered their expectations of multiple interest rate cuts by the US Federal Reserve this year.
Australia shares starts 2024 higher on rate-cut hopes
In Sydney, banks led the gains on Friday, rising 0.5%.
However, they were set for their first weekly decline since mid-November.
Top lender Commonwealth Bank of Australia rose 0.7% on Friday, while Westpac was up 0.1%.
Gold stocks gained 0.8% after four straight sessions of falls, as bullion prices recovered overnight.
Northern Star Resources and Evolution Mining climbed 0.9% and 0.8%, respectively.
Tech firms dropped for a third consecutive session, falling 1.3%, and were on track for their worst week since mid-October. Sector major Xero fell 1.1% on Friday, while WiseTech Global lost 1.6%.
New Zealand’s S&P/NZX 50 index dipped 0.1% to 11,747.52 and was set for its first weekly decline in more than two months.
Comments