Australian consumer prices gained more than economists forecast last quarter, sending the nationâ€™s currency higher as investors pared bets the central bank will cut interest rates.
The trimmed mean gauge of core prices rose 0.7 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 26 economists for a 0.6 percent gain. The consumer price index advanced 1.4 percent from the previous three months, compared with a forecast 1 percent increase.
Traders priced in a 77 percent chance of a rate reduction Nov. 6, down from 95 percent yesterday, swaps data compiled by Bloomberg showed after the figures were released. Reserve Bank of Australia Governor Glenn Stevens lowered borrowing costs in May and June as Europeâ€™s debt crisis threatened global growth and Chinaâ€™s economy slowed, and again this month.