Asian shares meander as US inflation test awaits; kiwi slides

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Key Points

SINGAPORE (Reuters) Asian stocks were tentative on Wednesday ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserves easing cycle, while the New Zealand dollar fell sharply after the central bank softened its hawkish stance on rates...

Investor focus is squarely on the personal consumption expenditures price index (PCE) for January, the Feds preferred inflation measure, due on Thursday..

A slew of strong economic data along with inflation that has proven to be sticky has resulted in traders drastically dialling back their initial expectations of deep and early interest rate cuts from the Fed...

Fed policymakers have also in recent days pushed back against cutting rates too early, with Federal Reserve Governor Michelle Bowman on Tuesday saying she was in no rush to cut U.S. interest rates, particularly given upside risks to inflation that could stall progress or even cause a resurgence of price pressures...

Meanwhile, the Australian dollar wobbled a bit in early trading after data showed consumer price inflation held at a two-year low in January, reinforcing market expectations interest rates would not need to increase any further..

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