The Australian share market traded without clear direction on Thursday, even as US inflation data came in at 3.4% overnight, reducing expectations of an imminent Federal Reserve rate hike. The reading, however, remains above the Fed's 2% inflation target, leaving the trajectory of future policy moves uncertain.

Heading into mid-afternoon trade, the ASX200 (XJO) was down approximately 0.6% at 9,155 points. On a week-over-week basis, the index has declined about 0.8%, though it remains up 3.5% over the past month.

Commonwealth Bank of Australia (CBA), the country's largest lender by market capitalisation, fell around 3% intraday on Thursday, following the release of its financial results the previous day, which included an $11 billion profit. The sell-off was consistent with profit-taking activity, a pattern often seen when strong results are already reflected in elevated share prices heading into reporting season.

Gold prices held at ten-week highs, hovering just above $4,400 per ounce. However, the softer US inflation reading raised questions about whether those levels can be sustained, as confidence in the US dollar may strengthen. Gold typically trades inversely to the dollar, and any shift in rate-cut expectations can quickly reshape demand for the metal.

Brent crude oil pulled back to $87 per barrel (USD), though it remained well above the relief levels seen the previous week, when prospects for a US–Iran agreement appeared more plausible. Geopolitical risk premiums in energy markets have fluctuated as diplomatic signals shift.

Looking ahead, Australian earnings season results are expected to be a primary driver for the local market, alongside overnight movements on Wall Street. February is one of the heaviest reporting periods for ASX-listed companies, making results from major sectors including banking, mining, and healthcare especially influential for index direction. No major data releases are scheduled from the Australian Bureau of Statistics (ABS) until mid-next week.

In notable corporate moves, exchange operator ASX Ltd surged more than 10% on Thursday following stronger earnings, despite fresh legal proceedings related to its long-running and troubled CHESS overhaul project. The CHESS system underpins Australia's equity clearing and settlement infrastructure, and repeated delays to its replacement have drawn regulatory scrutiny over several years.

Treasury Wine Estates gained over 5%, even after reporting a substantial loss. Meanwhile, Austal Ltd, like Commonwealth Bank, appeared to face profit-taking pressure following a positive result earlier in the week.