The market eased after a three-session rally to its highest level since early March, with investors weighing softer June inflation, upcoming domestic data and the Fed's decision to keep rates unchanged.
Australian stocks fell 20 points, or 0.2%, to 9,019 in Thursday morning trading, giving back some recent gains after a three-session advance lifted the market to its highest level since early March. Investors were cautious ahead of domestic data including June building permits and second-quarter export and import prices later in the day, followed by June private sector credit on Friday, while also parsing the Federal Reserve's decision to leave interest rates unchanged despite three policymakers backing a hike. In Australia, softer June headline inflation eased pressure on the Reserve Bank after three rate increases earlier this year. Losses were broad, led by utilities, technology, consumer names and logistics. BHP Group fell 1.0%, Nextdc and Lynas Rare Earths each dropped 3.0%, and BlueScope Steel lost 1.7%, while the four big banks outperformed with gains of 0.4% to 1.2%.