A$ shines on inflation data; US$ retreats from highs

London

THE Australian dollar was an outperformer on Wednesday, bucking a broad risk-averse environment in global markets, helped by a higher-than-expected inflation reading that dented chances of an interest rate cut in the near term.

Consumer prices rebounded by more than forecast last quarter in Australia, while the annual pace of core inflation edged up for the first time in more than a year, leading investors to price out almost any chance of a cut in rates next week.