Australian shares closed higher on Wednesday, tracking Wall Street markets, amid economic data that raised bets of interest rate cuts next month.

The S&P/ASX 200 rose 0.8% or 69.5 points to close at 8,606.5.

A decline in US consumer confidence and soft retail trade numbers raised bets the US Fed would cut again in December, Bloomberg reported.

"Over the past week, markets have done a U-turn with respect to both the chances of a December rate cut from the Fed, and the profitability prospects for the tech sector," wrote Tim Waterer, chief market analyst at KCM Trade.

On the domestic front, Australia's consumer price index rose 3.8% in the 12 months to October, up from a 3.6% gain in the year to September, the Australian Bureau of Statistics reported.

Australia's consumer price index of 3.8% in the 12 months to October was above expectations and supports ANZ's view that the Reserve Bank would hold rates in December and that its easing cycle has likely ended, ANZ Research reported.

Total construction work done in Australia fell 0.7% in seasonally adjusted terms to AU$79.28 billion in the September quarter compared with June, data from the ABS showed.

In company news, National Storage REIT (ASX:NSR) confirmed on Wednesday that it has received a conditional acquisition offer from a consortium of Brookfield Property Group and GIC Investments (Australia). Shares of the company rose past 19% at market close.

Electro Optic Systems Holdings (ASX:EOS) settled an Australian Securities and Investments Commission (ASIC) investigation with an agreed proposed penalty of AU$4 million and admitted to breaches of its continuous disclosure obligations by failing to disclose a "materially significant" decline in its 2022 annual revenue forecasts to the Australian bourse. Shares of the company rose past 3% at market close.

Lastly, Fisher & Paykel Healthcare (NZE:FPH, ASX:FPH) reported fiscal first-half earnings of NZ$0.36 per share, up from NZ$0.26 a year earlier. Shares of the company rose 5% at market close.