Aussie Hits 9-Week Low Amid Inflation Miss

The Australian dollar has hit a nine-week low after August inflation figures fell short of expectations. The monthly Consumer Price Index (CPI) rose 0.4%, below the forecasted 0.5%. Despite this, annual core inflation remained above the Reserve Bank's target band of 2-3%.

The trimmed-mean measure of core inflation also came in lower than expected at 0.2% month-over-month. However, annual core inflation held steady at 3.6%, a key factor behind the central bank's decision to raise interest rates to a 15-year high of 4.60% on Tuesday.

Markets have trimmed their bets for near-term interest rate hikes following the inflation miss. The odds of another hike in November have dropped from 36% to 20%, while the next increase is now seen as more likely in March rather than February.