Ongoing conflict in the Middle East unsettled global investment markets in March, leading to a broad sell‑off across share markets. In Australia, the S&P/ASX 200 Index fell 7.8% to close at 8,481.8 points, marking its largest monthly decline since June 2022.

The Australian dollar weakened by 3.1% over the month to around USD 0.69. At the same time, inflation pressures remained higher than expected, prompting the Reserve Bank of Australia (RBA) to increase the cash rate by a further 0.25% per annum to 4.10% per annum.

The Australian share market reached new record highs in February, with the S&P/ASX 200 Index gaining 3.7% to close at 9,198.6 points. The Australian dollar strengthened by 1.7%, now trading at 71.2 US cents.  The Reserve Bank of Australia (RBA) responded to higher-than-expected inflation by increasing the target cash rate by 0.25% per annum, with the Cash Rate now at 3.85% per annum.

The Australian share market rose in January, with the S&P/ASX 200 Index gaining 1.8% to close at 8,869.1 points. The Australian dollar strengthened by 4.8%, now trading at 70 US cents. Although the Reserve Bank of Australia (RBA) did not meet during the month, all focus is now on whether it will keep the Cash Rate at 3.60% per annum amid strong employment data and higher‑than‑expected inflation.