Australian equities edged lower Thursday, hovering near 8,524 after two sessions of gains, as traders weighed caution from the central bank. The RBA warned that a global supply shock from the war in Iran could lift inflation and long-term expectations, particularly amid persistent capacity pressures. Assistant Governor Chris Kent noted the board will continue balancing offsetting forces to guide monetary policy. On fresh data, Australia's headline CPI slipped to 3.7% in February from 3.8% previously, while trimmed mean CPI fell to 3.3%, below forecasts and January’s 3.4%. Losses were partly offset by Wall Street’s positive lead Wednesday, amid hopes for progress toward ending the conflict. Consumer durables, non-durables, and commercial services lagged, while strength in logistics, process industries, and energy minerals capped weakness. Early decliners included PLS Group (-2.7%), Aristocrat Leisure (-1.7%), NAB (-1.0%), and Sigma Healthcare (-1.1%).