Australian CPI Rose 1.2% - 25.7.2012

The Australian dollar rose against the greenback today after falling to an 11-day low of 1.0176. The currency pair is currently trading above its 20-day moving average, close to 1.0270, after the Australian Bureau of Statistics reported earlier today that consumer prices rose in the second quarter faster than in the first one. The 0.5% quarterly increase followed the 0.1% growth. Annual growth pace however slowed down from 1.6% to 1.2%. The so-called trimmed mean of consumer prices, which excludes extreme outliers, rose by 0.5% after a 0.4% rise in the previous quarter and by 2% annually, down from 2.2%. The core measures resulted better than economists expected on average and managed to lower the probability of the cash rate cut by the central bank on April 7, calculated from the swaps market data, to less than 60% from 80% at the beginning of the week.