• The ASX 200 lost ground before the Fed’s policy announcement.
• Bullock of the RBA emphasized that the fight against inflation is still ongoing.
• The interest rate, which is 3.45%, has not been altered by the PBoC.
• The Chinese foreign delegation emphasized that ties between China and Australia are progressing as planned.

After three days of gains, the ASX 200 Index ended its run of gains on Wednesday, closing at 7,695. For the third consecutive meeting, the Reserve Bank of Australia (RBA) has decided to hold interest rates at a 12-year high of 4.35%. Before the Federal Reserve’s (Fed) interest rate decision was made public later in the North American session, the market became apprehensive.

In a cautiously worded statement, the Reserve Bank of Australia avoided giving struggling purchasers optimism for an impending rate decrease. In the words of RBA Governor Michele Bullock, “the war is not yet won” against inflation. She admitted that inflation was still high in her monetary statement. Still, she only said that the bank was “ruling nothing in or out” without providing any details on when or if rate decreases might occur.

The Australian equities market moved in unison with commodity-linked stocks during the early trading hours. Notable gains came from Woodside Energy (up 1.16%) and Fortescue Metals (up 1.90%) at the time of publishing. In the ASX 200 Index, Amcor, Perseus Mining, and South32 are among the biggest losers, while Core Lithium, Telix Pharmaceuticals, and Paladin Energy are the top gainers.

For the Horse Rocks lithium project, Lord Resources and Mineral Resources, a renowned diversified resources business, have reached a farm-in agreement. Additionally, the company and Poseidon Nickel completed a legally binding head of agreement earlier this week for the purchase of the Lake Johnston nickel concentrator plant.

A recent research commissioned by the Chamber of Minerals and Energy of WA (CME) states that last year saw a notable 32% rise in spending in the Western Australian resources industry, with a record $132 billion spent. The state’s direct economic contribution also saw a significant increase, topping $77 billion, or nearly $27,000 per Western Australian, according to data from the CME’s annual financial contribution factsheets.

In the meeting between Australian Foreign Affairs Minister Penny Wong and Chinese Foreign Minister Wang Yi, the Chinese side highlighted the great potential of the two countries’ economies and stressed how highly complementary they are. It was underlined that there should be no hesitancy, divergence, or reversal in the progress made, emphasizing that China-Australia ties are on the correct course.