The Australian dollar is lower, extending the losses that started after the release of weaker than expected inflation figures on Wednesday.

At 0635 AEDT on Thursday, the local currency was worth 80.43 US cents, down from 80.90 cents on Wednesday.

The annual inflation rate in the December quarter was 1.9 per cent, which is below the RBA’s two to three per cent target range, decreasing the chance of an interest rate rise any time this year.