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Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

Australian Interest Rates Are Focus As Data Show Inflation Quickening and Oil Costs, Tax Concerns Hurt
German Business Confidence

  • Summary: Annual inflation in Australia rose to 4% in the second quarter, the highest since 1995. The figure strongly suggests that an interest rate hike (from the current 5.75% to 6%) is in the cards for next week. Higher fuel and food prices contributed to the higher-than-expected figure from the Australian Bureau of Statistics. In Germany, meanwhile, the closely-watched business confidence index fell more than expected, while remaining near a 15-year high. Concerns over oil prices and a proposed sales tax hike contributed to the fall. European indicators are showing mixed signals on the strength of the Continent's economic upturn, with consumer spending up in Italy and France while business confidence has now declined recently in Spain, Italy, Demark, Belgium and Germany.
  • Comment on related stocks/ETFs: Note that there's now an ETF that tracks the Australian currency: Australian Dollar Trust (NYSEARCA:FXA).
Source: Australian Inflation Rising, While European Economy Shows Mixed Signals