The local bourse has finished basically where it began the day, treading water as a cooler-than-expected inflation readout reinforced the case that the Reserve Bank is done hiking rates.
The benchmark S&P/ASX200 index on Wednesday closed down 2.6 points, or 0.03 per cent, to 7,660.4, while the broader All Ordinaries dipped 5.1 points, or 0.06 per cent, to 7,918.1
The flat finish came the Australian Bureau of Statistics reported that core consumer prices rose 4.1 per cent in the 12 months to January, down from 4.2 per cent in December.
Betashares chief economist David Bassanese said the consumer price index report should be reassuring to the Reserve Bank and reduced the risk that it might consider another rate hike in the coming months.
"Indeed, the CPI result remains consistent with my view that the RBA will have capacity to cut interest rates at least twice in the final months of 2024," Mr Bassanese said.
Across the Ditch, the Reserve Bank of New Zealand left the cash rate unchanged at 5.5 per cent, as most had expected, but its outlook and commentary surprised economists by being on the more dovish side.
"The RBNZ completely defied the narrative," Capital.com analyst Kyle Rodda said.
Six of the ASX's 11 sectors finished high, four closed lower and mining was unchanged.
Tech was the biggest mover, climbing 2.9 per cent as Xero added 4.4 per cent and NextDC soared 12.1 per cent after announcing its operating earnings rose five per cent to $4.5 million in the first half.
"We are pleased to deliver another record result in 1H24," said Craig Scroggie, chief executive of the data-centre-as-a-service company.
Flight Centre fell 3.9 per cent to a six-week low of $20.89 after the travel retailer announced slightly weaker-than-expected first-half earnings.
Managing director Graham Turner said the company's recovery was impressive given the backdrop of economic and geopolitical uncertainty, interest rate increases and conflict in Ukraine and the Middle East, underlining the travel sector's resilience.
Kelsian Group retreated 12.0 per cent to a five-month low of $5.68 after the public bus operator announced what RBC Capital Markets analyst Owen Birrell called a relatively weak earnings result with a lower-than-expected dividend.
Kelsian managing director and chief executive Clint Feuerherdt said that labour availability issues that had impacted Kelsian's ability to meet contracted service requirements had abated, and the transition to its new Sydney contract bus services had been on time and on budget.
The Big Four banks were all lower, with Westpac dropping 0.2 per cent to $26.20, CBA subtracting 1.0 per cent to $115.96, NAB closing down 0.6 per cent to $33.88 and ANZ edging 0.1 per cent lower at $28.48.
In the heavyweight mining sector, Fortescue fell 5.5 per cent to $26 and BHP dipped 0.2 per cent to $43.95 while Rio Tinto added 0.2 per cent to $123.38.
In healthcare, Neuren plummeted 10.9 per cent to a two-month low of $19.15 after its partner Acadia Pharmaceuticals reported $US87.1 million ($133 million) in fourth-quarter sales for its new treatment for Rett syndrome, a rare genetic disorder.
The Australian dollar was buying 65.12 US cents, from 65.47 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Wednesday down 2.6 points to 7,660.4
* The broader All Ordinaries dropped 5.1 points to 7,917.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.12 US cents, from 65.47 US cents at Tuesday's ASX close
* 98.09 Japanese yen, from 98.53 yen
* 60.16 Euro cents, from 60.35 Euro cents
* 51.44 British pence, from 51.63 pence
* 106.71 NZ cents, from 106.17 NZ cents.
