The Australian dollar fell today for a second day against its U.S. counterpart as the in inflation rose slower than expected, fueling the speculation that the central bank would keep the interest rates unchanged.

The consumer price index rose 0.6 percent in the June quarter 2010, compared with the rise of 0.9 percent in the March quarter 2010. The forecasts promised the 1.0 percent growth. There are not many reasons for the Reserve Bank of Australia to raise the interest rates next week, though the bank still may raise the rates later this year. The Aussie will probably decline to $88.50 in the near term.

AUD/USD declined from 0.9022 to 0.8954 today as of 9:29 GMT after falling as low as 0.8922.

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