Australian CPI expected at +0.4% in Q4

Not much to get excited about in overnight trade and the market will now focus on the Australian CPI data in a little over 30 minutes. This may add to short-term volatility but unless it’s grossly different to expectations, it’s unlikely to shift the RBA out of it’s wait-and-see mode.

Of more importance to the short-term direction of the AUD could be the story re one of the Chinese Trust Banks possibly defaulting on January 31st. I will post some more information on this shortly or you can check out the RBS Q&A in the chat-room.