Ella 
Wall Street closed lower on Wednesday, with sentiment remaining subdued. On Tuesday, Minneapolis Fed President Neel Kashkari shocked investors with hawkish comments that a rate hike was not out of the question. When asked about rate cuts, Kashkari said he expected no more than two rate cuts.
Meanwhile, the CME FedWatch tool showed that investors have priced in a 25 basis point rate cut in 2024, based on December 2024 Fed Funds futures contracts.
In terms of data, the U.S. regional Fed activity survey indexes for May were mixed. The Richmond Fed manufacturing index rose to 0 from the previous value of -7. The Dallas Fed service industry index fell to -12.1, weaker than -10.
In terms of the Australian dollar, the monthly rate of the consumer price index in April rose to 3.6% from 3.5% in March, a five-month high. “Deflation in the underlying inflation measure has also stalled. We maintain our forecast for a cash rate cut in November, but risks remain tilted towards a later start,” ANZ analysts noted.
Australian economic events will include a speech by Assistant Governor of the Reserve Bank of Australia (RBA) Sarah Hunter and building approvals data.
