
Australian shares edged lower this week, with the ASX 200 down 0.4%, as renewed hostilities between the US and Iran weighed on investor confidence and pushed oil prices higher before they stabilised. The Australian 10-year government bond yield rose to 4.87%, while the Australian dollar remained around US$0.69. RBA Chief Economist Sarah Hunter noted that geopolitical events and supply shocks continue to make managing inflation more challenging, with Australia’s core inflation remaining elevated compared with other developed economies. Housing also remained in focus, with new dwelling completions continuing to fall well short of the National Housing Accord target.
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