The Australian dollar fell at the beginning of today’s trading session as Australia’s consumer prices rose last quarter slower than was predicted. The currency pared losses versus the US dollar, but remained weak against the Japanese yen.
The Australian Consumer Price Index grew just 0.2 percent in the fourth quarter of 2012 after rising as much as 1.4 percent in the previous quarter. Analysts have hoped for 0.4 percent growth. The falling CPI added incentive for the central bank to cut interest rates. Not all news was bad though as Melbourne Institute reported that the leading index grew 0.6 percent in November, beating the meager October’s increase of 0.1 percent.
AUD/USD near the opening level of 1.0563 as of 10:54 GMT today after falling to 1.0525. AUD/JPY declined from 93.70 to 93.25.
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