Australian wages rose by less than expected last quarter, with even a mandated jump in the minimum wage failing to lift workers' pay across the economy. It's a weak result that threatens to sap consumer spending and inflation.

The Aussie dollar instantly slid a third of a US cent to a four-month low at US75.96¢ and bond yields fell as investors pushed out the probability of an interest rate hike to 2019.

"There is little to suggest wages growth will pick up much in 2018 and into 2019," said Su-Lin Ong, head of Australian economics at RBC Capital Markets.

"That hints at downside risk to inflation and we stick to the view rates will remain at 1.5 percent for all of next year."