ASX Set to Rally as Fed's Powell Signals Potential Rate Cuts

Australian shares are positioned for a strong opening rally, with ASX 200 futures indicating a 91-point (1%) rise to 9011, following Federal Reserve Chairman Jerome Powell's latest signals on monetary policy direction.

Powell's Rate Cut Indications Boost Market Confidence

Speaking in Philadelphia, Powell emphasized ongoing concerns about downside risks in the US jobs market, reinforcing expectations for monetary easing. This development comes amid broader regional economic discussions, similar to those addressed during recent Indo-Pacific economic partnership talks.

"Powell's assessment confirms the Fed is on track to cut 25 basis points in October, consistent with the median SEP projection for cuts in September, October and December," noted Evercore ISI's Krishna Guha.

Key Market Events and Economic Indicators

Several significant events are scheduled for the Australian market:

• RBA assistant governor Sarah Hunter's speech at the Citi Australia & New Zealand Investment Conference
• RBNZ chief economist Paul Conway's keynote address
• China's upcoming September consumer and producer price reports

Corporate Calendar Highlights

The business calendar remains active, reflecting Australia's dynamic economic landscape, which continues to strengthen despite global challenges, as recently highlighted during recent high-level diplomatic engagements in Sydney. Key events include:

• Bank of Queensland, 29Metals, and Evolution Mining results
• Annual meetings for CBA, Origin Energy, and Lottery Corp

Policy and Economic Implications

The market movements come amid broader economic policy discussions, including the super tax overhaul and industrial policy debates. These developments parallel recent strategic partnership developments that are reshaping Australia's economic landscape.