ASX Set for Downturn as US Inflation Data Looms

Australian shares are expected to open lower on Wednesday following a softer session on Wall Street and a decline in gold prices.

The US inflation data, set to be released soon, is a key driver of interest rate decisions by the Federal Reserve. This uncertainty has weighed on US stocks overnight, with the S&P 500 and Dow down 0.3% and the Nasdaq down 0.6%. The ASX edged up 0.2% to 9,250.60 on Tuesday but is now influenced by the global lead and weaker gold.

The Australian market is also waiting for the earnings reports from Commonwealth Bank of Australia, which posted higher cash earnings and net operating income than last year, and Suncorp, an insurer and bank that reported higher cash earnings and gross written premium. The Reserve Bank of Australia Assistant Governor Christopher Kent's speech on Thursday may shift expectations for Australian interest rates.