The Canadian dollar rose on Wednesday, extending its gains after data released yesterday showed inflation came in higher than expected.

Canadas annual inflation rate accelerated to 2.4% in September, driven mainly by a smaller year-on-year decline in gasoline prices compared with the previous month, as well as higher food prices.

This report marks the final major economic release before the upcoming Bank of Canada meeting later this month. Analysts and investors widely expect the central bank to cut interest rates for a second consecutive time.

Economists surveyed by Reuters had forecast annual inflation to rise to 2.3% in September after recording 1.9% in August.

Statistics Canada (StatsCan) reported that the Consumer Price Index (CPI) rose 0.1% month-on-month in September, following a similar 0.1% decline in August.

As of 21:03 GMT, the Canadian dollar strengthened 0.3% against the US dollar to 0.7141.

Australian Dollar

The Australian dollar also edged higher, up 0.1% to 0.6491 against the US dollar at 21:03 GMT.

US Dollar

The US dollar index was steady at 98.9 points as of 20:54 GMT, having touched a high of 99.1 and a low of 98.7.

Netflix shares fell sharply after the company reported weaker-than-expected revenue and earnings for the third quarter, while investors awaited Teslas results due after the market close.

Traders are looking for key signals from upcoming US inflation data later this week to gauge the Federal Reserves policy path, with expectations strongly leaning toward a rate cut at next weeks meeting.

Meanwhile, the US government shutdown has entered its 22nd day, though optimism is growing that it could end later this week.

Kevin Hassett, Director of the National Economic Council, told CNBC in an interview that the shutdown is likely to end within the week.

Analysts at Citigroup said expectations for an imminent resolution to the US government shutdown along with progress toward a trade deal between Washington and Beijing could help stabilize gold prices in the coming weeks.