SYDNEY: The Australian dollar got a much-needed lift on Wednesday as data showed inflation blew past all expectations last quarter, narrowing the odds on a rate rise as early as next week.

The impact was limited, however, as investors have already priced in a whole series of rate hikes from the Reserve Bank of Australia (RBA) and, in any case, are more concerned about Chinese lockdowns and sinking stock markets.

As a result, the Aussie was still left limping at $0.7150, having shed 1.3% for the week and 4.3% on the month. Support lies around $0.7086/95, but there is a real risk of returning to its January lows around $0.6968.

The kiwi dollar slid to a three-month trough of $0.6570, bringing its losses for the month to 5.3%. That left it uncomfortably close to the January low of $0.6531 and a break would take it to depths not seen since late 2020.

It was notable the kiwi has got no lift from higher local rates with the Reserve Bank of New Zealand having already hiked four times to 1.5% and promising more ahead.