FX.co ★ ASX Drops 1.0% to Finish at 6-Week Low

The ASX 200 fell 92 points, or 1.0%, to close at a six-week low of 8,804. It was the index’s third straight decline, with a brief rebound in U.S. futures failing to improve sentiment after Wall Street recorded a third consecutive loss on Wednesday. Global markets remained under pressure from escalating U.S.–Iran tensions, which pushed Brent crude above USD 100 a barrel and reignited inflation concerns.

Domestically, RBA Deputy Governor Andrew Hauser signaled that policymakers will consider further tightening at the September meeting, while Assistant Governor Sarah Hunter cautioned that the central bank has limited tolerance for any renewed inflation pressures. The hawkish messaging led all four major banks to predict another rate hike before year-end, with NAB expecting a move in September and the others pointing to November.

Losses were broad-based, with healthcare, non-energy minerals, technology, and financials among the weakest sectors. The big four banks fell between 0.9% and 1.8%, while BHP dropped 2.4% and Rio Tinto lost 3.1%. Other notable decliners included Pilbara Minerals (-3.8%), NextDC (-3.3%), and Lynas (-2.9%). Modest gains in Cochlear (1.6%) and Suncorp (1.3%) helped limit the downside.