ASX Today Live News & Analysis

Australian shares have snapped a three-session winning streak after hotter-than-expected inflation numbers ratcheted up bets on an incoming interest rate hike.

The S&P/ASX200 fell 7.7 points on Wednesday, down 0.09 per cent, to 8,933.9, as the broader All Ordinaries dropped 17.9 points, or 0.19 per cent, to 9,250.6.

The bourse gave up a modest morning lift to slip lower in the afternoon, after yet another upside inflation surprise increased chances the Reserve Bank will lift the cash interest rate at its first 2026 meeting next week.

Ongoing US dollar weakness has supported oil and gold prices, pushing energy and materials stocks higher while the nine remaining local sectors fell behind, led by interest rate-sensitive segments.

"The damage would obviously have been a lot worse,.given consumer facing stocks, financials and real estate sectors, all are down on the day," IG market analyst Tony Sycamore told AAP.

"But with the energy sector and materials doing the same, it means we've had a fairly modest down day."

Oil prices rose to their highest price since September, helping to lift energy stocks 2.3 per cent, tracking with strength in Santos and Woodside, as Woodside posted a record year of production.

Uranium stocks outperformed the top-200, with names like Paladin and Deep Yellow up more than five and 10 per cent, respectively, after Deep Yellow slashed its cost guidance.

Gold miners helped the materials sector advance 1.4 per cent, as the precious metal clocked a new US$5,260 ($A7,520) an ounce record on the back of a US dollar retreat, as silver flirted with its recent peak above $US117 ($A167) an ounce.

Lithium miners didn't fare so well, with PLS and Liontown each trading lower, both companies facing some profit-taking after soaring in the second half of 2025.

Interest rate-sensitive sectors like IT stocks (-2.8) and real estate (-0.9) were under pressure, while consumer discretionaries lost 1.3 per cent and staples faded 0.9 per cent.

The heavyweight financials sector edged 0.3 per cent lower, as three of the big four banks traded lower, led by a 0.5 per cent dip in ANZ shares to $36.40, while CBA eked a 0.2 per cent lift to $150.36.

Major insurers were broadly lower, as claims linked to multiple bushfires burning across Victoria topped $200 million, according to the Insurance Council of Australia.

The Australian dollar is buying 70.04 US cents, trading at three-year highs and up from 69.15 US cents on Friday at 5pm.

Local currency strength was likely to play out in different ways over the short and medium term for local companies, Mr Sycamore said.

"The exporters are going to be doing well because commodity prices are rising, but at some point - probably closer to 75 US cents - the Aussie dollar will start to erode some of those earnings," Mr Sycamore said.

"Meanwhile the importing stocks, for example, Qantas or Virgin, will start to do a little bit better because the Aussie dollar is making their jet fuel cheaper."

ON THE ASX:

The S&P/ASX200 lost 7.7 points, or 0.09 per cent, to 8,933.9

The broader All Ordinaries gained 17.9 points, or 0.19 per cent, to 9,250.6

The NZX 50 Lost -98.01 points (-0.73%) to 13,412.87 while the Nikkei gained 25.17 points (0.05%) at the time of writing, to be closed at 53,358.71