All Eyes on Australian CPI

• Trade policy remains in focus, with the US now implementing a 10% broad-based tariff under Section 122. Although President Trump has publicly flagged a move to 15%, and officials appear to be working toward that shift, no formal escalation has yet been confirmed.
• In contrast to the policy noise, US consumer sentiment showed modest improvement. The Conference Board index rose to 91.2 in February, with January’s previously weak outcome revised higher.
• The gain was led by firmer expectations around employment, income growth and general business conditions, suggesting households remain cautious but not deteriorating.
• Attention now turns back to domestic data, with January CPI due. Markets are looking for inflation to print around 3.7% y/y headline and 3.3% y/y on the trimmed mean,
• Also on today’s calendar is Q4 Construction Work Done, the first investment indicator feeding into the Q4 GDP release on 4 March,