Australian Inflation Accelerates

Australian consumer prices gained more than economists forecast last quarter, sending the nation’s currency higher as investors pared bets the central bank will cut interest rates.

The trimmed mean gauge of core prices rose 0.7 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 26 economists for a 0.6 percent gain. The consumer price index advanced 1.4 percent from the previous three months, compared with a forecast 1 percent increase.

Traders priced in a 77 percent chance of a rate reduction Nov. 6, down from 95 percent yesterday, swaps data compiled by Bloomberg showed after the figures were released. Reserve Bank of Australia Governor Glenn Stevens lowered borrowing costs in May and June as Europe’s debt crisis threatened global growth and China’s economy slowed, and again this month.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.