Sydney, Jan 28, 2026, 21:53 (AEDT) — Market closed.
Australian shares slipped slightly on Wednesday, ending a three-day winning streak as hotter inflation data raised bets on an imminent rate hike. The S&P/ASX 200 dipped 7.7 points, or 0.09%, closing at 8,933.9. The broader All Ordinaries fell 0.19% to 9,250.6. (Commbank)
Rates are back in focus. Australia’s trimmed-mean CPI, which excludes volatile price swings, climbed 0.9% in the December quarter. That pushed the yearly rate to 3.4%, exceeding the Reserve Bank’s 2% to 3% target range. Swaps now price in a 73% chance of a 25-basis-point hike at the RBA’s Feb. 3 meeting, after ANZ’s Adam Boyton noted that demand is “running ahead of supply.” (Reuters)
Overseas, traders were keeping an eye on a U.S. Federal Reserve decision expected overnight, as the dollar sought to regain footing following a steep drop. Reuters noted the currency’s slump boosted commodity prices, sending gold to new highs and briefly lifting the Australian dollar above 70 U.S. cents earlier. (Reuters)
Inflation data released today showed a mixed picture across the board. The Australian Bureau of Statistics reported that annual CPI inflation climbed to 3.8% for the year ending December 2025. Energy costs stood out, with electricity prices surging 21.5% over the period. Services inflation was boosted by a 9.6% jump in domestic holiday travel and accommodation, alongside a 3.9% rise in rents. (Australian Bureau of Statistics)
Energy and materials offered some relief, though the market still showed signs of strain. Deep Yellow surged 10.7%, Silex Systems climbed 7.4%, and Paladin Energy rose 5.4%. On the downside, Life360 dropped 7.6%, while Catapult Sports fell 6.8%, according to ABC. The Australian dollar hovered near 69.9 U.S. cents late in the session. Spot gold held close to $5,257 an ounce, and Brent crude traded around $67.92 a barrel. (ABC News)
Woodside Energy (WDS.AX) climbed up to 2.53% after beating fourth-quarter revenue expectations, despite warning of a weaker production forecast for 2026. Interim CEO Liz Westcott confirmed Scarborough is “94% complete” and remains on schedule to deliver its first LNG cargo in Q4 2026. Analysts from Jarden and MST Marquee described the quarter as “strong.” (Reuters)
Ampol (ALD.AX) bucked the trend, though. The fuel retailer projected 2025 replacement-cost EBIT around A$945 million. Still, its shares dropped 4.09% in early trading. Market strategist Jessica Amir at Moomoo noted investors are shifting away from energy stocks grappling with “structural headwinds.” (Reuters)
ASX Ltd (ASX.AX) warned investors of a bigger-than-expected cost hit from the clean-up bill. The exchange operator raised its FY26 expense growth forecast to 20%–23%, factoring in ASIC inquiry expenses, or 13%–15% if those costs are stripped out. More details will come with its unaudited 1H26 results on Feb. 12. CEO Helen Lofthouse said the interim inquiry report has added “even greater urgency” to the ongoing transformation. (ASX Announcements)
Santos (STO.AX) is banking on export volumes as a key driver. The firm announced its first LNG shipment from Barossa LNG was loaded onto the Kool Blizzard, which left Darwin LNG on Jan. 25 headed for Japan’s Sakai terminal. CEO Kevin Gallagher described it as an “outstanding achievement” given the project’s size. (ASX Announcements)
But don’t be fooled by the quiet finish. A stronger dollar from the Fed or a surprise move by the RBA to ease tightening bets could quickly drain commodity gains. That would leave rate-sensitive growth stocks vulnerable once again.
Thursday’s open hinges on the Fed decision and Chair Jerome Powell’s remarks. After that, local traders will turn their focus to the RBA’s Feb. 3 announcement, followed quickly by a batch of corporate earnings starting with ASX’s half-year results on Feb. 12.
