Forex Trading News – Australian CPI higher than expected

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Inflation in Australia jumped more than it was expected in June, mainly driven from the higher cost of fresh fruit, the rate now is well above the RBA’s target, a development which definitely will add extra pressure for changes in the monetary policy. Consumers Price Index for the second quarter of 2011 increased by 0.9%, the annual rate jumped to 3.6% beating the forecast of 3.4%. After the announcement of the news the Aussie surged to a new post floating era high (all time high) of 1.1061, recording an impressive jump prior to the news release. Currently the AUD is trading at 1.1038 against the USD, targeting a new high considering the fragility of the US Dollar and the debt issues that have arisen in the world’s largest economy.