Australian shares are poised to fall as traders reassess the prospects of interest rate cuts after the US posted higher-than-expected inflation for a third straight month.

Wall Street’s main stock indexes tumbled and US Treasury 10-year yields jumped over the 4.5 per cent mark that some investors are watching as a threshold that could determine whether rates will revisit their 2023 highs. Minutes from the Fed’s March policy meeting reflected concerns that inflation’s progress toward its 2 per cent target might have stalled, and restrictive monetary policy may need to be maintained for longer than anticipated.