The local share market has closed slightly lower, little changed by consumer price index data showing a slight pick-up in domestic inflation.
The benchmark S&P/ASX200 index finished Wednesday down 7.9 points, or 0.11 per cent, to 7,030.3, while the broader All Ordinaries fell 8.4 points, or 0.12 per cent, to 7,229.9.
The Australian Bureau of Statistics reported in the morning that consumer prices rose 5.2 per cent in the 12 months to August, up from 4.9 per cent in the year to July, in a readout that IG market analyst Tony Sycamore called "bang on expectations".
"Nothing to see here, so back to watching the price action in US Treasuries."
US 10-year Treasury yields had eased slightly from Tuesday but were still a touch over 4.5 per cent for the first time since 2007, pressuring equities around the world.
Mr Sycamore and several other experts said that the data would not move the needle for the Reserve Bank, which is widely expected to leave rates on hold at its next meeting on Tuesday.
Some economists are still predicting the RBA could hike in November, however, depending on the full third-quarter inflation readout on October 25.
NAB head of market economics Tapas Strickland sits in that hawkish camp, and on Wednesday said that markets should consider whether one more rate hike would be enough given the tightness of the labour market.
Every ASX sector finished lower except financials and property, which both rose slightly. Tech was the biggest loser, falling 1.0 per cent.
The heavyweight mining sector dipped 0.1 per cent despite gains for the iron ore giants.
BHP rose 0.4 per cent to $43.49, Fortescue added 1.3 per cent to $20.37 and Rio Tinto closed up 0.1 per cent at $111.05.
But goldminers were lower as the price of the non-yield-bearing asset dipped under $US1,900 an ounce for the first time since late August, pressured by the rising bond yields. Newcrest fell 2.1 per cent, Northern Star subtracted 2.4 per cent and Evolution dropped 3.5 per cent.
ResMed was the biggest gainer in the ASX200, rising 4.8 per cent to a week-and-a-half high of $23.19, after seeing its share price value slashed by nearly a quarter last month over fears that weight loss wonder drugs such as Ozempic might cut into the sleep apnoea company's business. Goldman Sachs analysts this week called that an overreaction.
The Big Four banks also rose with Westpac adding 0.7 per cent to $21.19, NAB up 0.6 per cent to $29.04, CBA adding 0.5 per cent to $100.53 and ANZ finishing 0.4 per cent higher at $25.20.
Insurance companies had a tough day, however, with IAG down 2.6 per cent to a three-month low of $5.65, Suncorp declining 2.0 per cent to a nearly two-week low of $13.90 and QBE falling 1.0 per cent to $15.77.
Star Entertainment Group fell 8.4 per cent to an all-time low of 63.5c after the casino company raised $565 million at a 20 per cent discount on Tuesday.
Chief executive Robbie Cooke called the refinancing a "key milestone in the renewal of The Star", which has struggled since last year's Bell inquiry made findings of misconduct at its casinos.
Qantas finished up 0.4 per cent to $5.18 as chairman Richard Goyder launched a passionate defence of his job at a fiery parliamentary inquiry.
The Australian dollar had fallen to a nearly three-week low against its US counterpart, which has been gaining against other currencies on the prospect of US interest rates remaining higher for longer next year.
The Aussie was buying 63.82 US cents, from 63.99 US cents at Tuesday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Tuesday 7.9 points lower at 7,030.3, a drop of 0.11 per cent.
* The All Ordinaries dropped 8.5 points, or 0.12 per cent, to 7,229.8.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.82 US cents, from 63.99 US cents at Monday's ASX close
* 95.11 Japanese yen, from 95.43 Japanese yen
* 60.37 Euro cents, from 60.52 Euro cents
* 52.52 British pence, from 52.59 British pence
* 107.46 NZ cents, from 107.61 NZ cents
