Ive lost body fat :D

So my scales have been somewhat static, Ive been doing heaps of running and a bit of gym work - but havent really lost any weight.
Ive been eating OK - been doing MFP for 3 months now and kinda stopped tracking all my food but staying within my guideline of 1400 cals.
My first assesment at the gym was in June.
I was 72.4 kgs (160lbs) and 31.9% body fat.
I had another assesment in late July
I was 70 kgs (154 lbs) and 25.8 % body fat
Toadys assesment
68.9 kgs (152lbs) and 20.4% body fat!

Yay, in 2 months I have lost 2 lbs, but 5.4% body fat.
So the reason why my scale isnt showing a difference is because Ive been gaining muscles.