Australian August Inflation Data Strengthens AUD/USD To Mid-August High Late New York Sunday

9/4/2006 12:26:10 AM AUD/USD opened New York Sunday deals at 0.7655 and after the release of various Australian economic data including Australia inflation data for August by TD securities.

The TD Securities-Melbourne Institute August Inflation gauge rose 0.6%, following a 0.2 per cent climb in July. Economists had been expecting a 0.2% climb for August too. Also, the gauge marked 3.8 % increase yearly, up from 3.5 % in July. The readings put annual inflation well above the central bank's target band of 2 to 3 per cent.

This came a day before the RBA rate decision which is due out New York Tuesday. Although it is widely expected for the RBA to hold the benchmark rate unchanged at 6% in this meeting, chances grew up for a hike in the near future in the backdrop of the TD securities data.

As the US markets remain closed for Monday following the Labor Day holiday, no key economic data are expected from the US. Lately, the pair follows a range-bound movement that marked 0.7694-0.7702. This is a high since 16 August.