Australian shares have edged lower while the local currency has rallied after higher-than-expected inflation figures quashed hopes for a pause in the Reserve Bank’s interest rate hike cycle next month.
The benchmark S&P/ASX200 index settled 22.1 points, or 0.30 per cent lower, at 7,468.3 by close on Wednesday. It had earlier dropped nearly 0.5 per cent after release of the data.
The broader All Ordinaries closed 22.5 points, or 0.29 per cent lower, at 7,688.
Technology, mining and energy stocks were the worst affected, while prospects of expanding interest margins lifted financial stocks.
The shock data pushed the Australian dollar up to a five-month high of 71.09 US cents. The local currency was trading at 70.97 US cents at 1620 AEDT.
(Australian Associated Press)