Aussie Spikes To Mid-August High Against Euro Following Australia Inflation Data

9/4/2006 12:41:38 AM EUR/AUD declined to a low since 16 August late New York Sunday after the Australia TD securities inflation data for August was released. The pair that opened the Sunday's trading at 1.6735, hit 1.6689 by around 10:30 pm Eastern Time.

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 late New York Monday. 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.

Lately, EUR/AUD has been showing choppy trading. Euro-zone July PPI data is expected later in this morning. As of 12:40 am ET Monday, a euro collected 1.6697 Australian dollars.