The Australian dollar is trading lower today after the release of inflation figures earlier today raised expectations of a rate cut from the RBA.

At 11.32am (GMT) the Aussie dollar was trading at US74.75c down from US75.00c in Yesterday’s trading.

After pushing as high as US75.65c before the CPI numbers hit the market, the currency pulled back sharply as inflation rose by 0.4 percent bringing the yearly total to 1 percent ,marking the slowest growth since 1999.

The figure is still well below the Reserve Bank of Australia’s inflation target and may force them to cut rates next week.

“The data placing huge pressure on the RBA to cut rates next Tuesday,” noted Altair markets analyst Tristan K’Nell.

“There is an increasing risk that we may not be able to move anywhere near the inflation target given pressure from a lack of wage growth, over supply of rental properties and low or falling prices for a wide range of goods imported from China in to Australia.” He added.