The Australian dollar strengthened to a 6 1/2 -month high against the New Zealand dollar after a government report showed that Australia's consumer price index rose less than expected in the second quarter of 2012. The CPI rose 0.5 percent in the second quarter of 2012 compared to the previous three months. That was slightly below forecasts for an increase of 0.6 percent following the 0.1 percent increase in the first quarter. On a yearly basis, CPI was up 1.2 percent - also shy of expectations for an increase of 1.3 percent following the 1.6 percent gain three months earlier. The Reserve Bank of Australia's weighted median CPI rose 0.7 percent in the second quarter from the first quarter and rose 1.9 percent on year. Its trimmed mean CPI rose 0.5 percent in the second quarter from the first quarter and rose 2.0 percent on year.