Mixed CPI data pushed the ASX 200 0.3% higher as tech rebounded. Headline undershot but trimmed mean overshot, leaving RBA bets unchanged before May 6.
Australia's February CPI landed right in the middle of market expectations, producing a split result that left the ASX 200 to grind 0.3% higher by midday Tuesday.
Headline inflation undershot consensus, cooling to its lowest pace in six months. The RBA's preferred trimmed mean, however, overshot – ticking up against forecasts. The net effect was a wash for rate expectations. Traders said the data failed to give the central bank a clear signal heading into its May 6 meeting, where the market is pricing roughly a 60% chance of a hold.
Nine of eleven sectors traded in the green. Technology staged the day's sharpest reversal after Monday's rout. Xero jumped nearly 8% – Citi analysts pointed to confidence in its UK pricing strategy. WiseTech surged more than 14% as buyers returned following a two-session selloff that had wiped roughly a quarter of its market value.
Healthcare also firmed. CSL extended its recent run, and gains at ResMed and Ramsay Health Care added support. Banks posted modest gains: Commonwealth Bank and Westpac each added about 1%. NAB was flat.
The weak side of the ledger was materials and energy. Gold slipped on expectations that the Federal Reserve will keep rates elevated, dragging mining stocks lower. Ora Banda and Resolute Mining dropped; Newmont eased by a smaller margin. Brent crude dipped below $77 a barrel as US-Iran peace talks progressed, weighing on Woodside and Karoon Energy.
Company-specific moves stood out. Baby Bunting tumbled 12% after cutting its CY26 profit guidance. The retailer said the fourth quarter ran weaker than expected. Tasmea bucked the trend, rising 5% after unveiling plans to acquire energy services provider JPS Group for up to $75 million while reaffirming its earnings outlook. Atlas Arteria edged lower after IFM Investors extended its takeover offer by another two weeks. KMD slipped 3% after announcing a one-for-25 share consolidation.
The RBA meets on May 6. Traders will watch the next CPI print in April for a clearer steer on whether the trimmed mean's stickiness is a one-off or a pattern.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.