Aussie tumbles as weak CPI print sees bets placed on November cut

The Australian dollar shed almost 1% against the greenback on Wednesday after the September-quarter CPI came in slightly weaker than expected, raising speculation that the RBA will cut interest rates to stoke inflation and growth.

Headline inflation held at 1.5% in the September quarter, with the quarterly change in the CPI rising just 0.5%, below the 0.7% increase forecast by markets.

The AUD/USD pair tumbled 0.89% to $0.7123 about an hour after the release from $0.7188 ahead of it, hitting a low of $0.7114. The AUD/NZD pair fell 0.45% to $1.0573 from $1.0620.

The RBA has kept the benchmark cash rate on hold at a record-low 2% since May, partly due to the labor market's resilience amid softer growth conditions.