Although Wednesday's CPI data out of Oz......>

AUSSIE: Although Wednesday's CPI data out of Oz overshot market expectations &

led to the unwinding of RBA easing bets, resultant bid in AUD was relatively

short-lived. European hours saw the resumption of selling pressure, which took

AUD/USD through its recent multi-month low of $0.6737 in the lead-up to the

monetary policy decision from the FOMC. That said, the rate pared losses as some

modestly bearish accents in Fed Chair Powell's presser applied weight to USD.

- Worth noting that RBA watcher Terry McCrann has re-affirmed his call that the

RBA will not cut rates next week, post-CPI, highlighting that "the retail sales

figures for Christmas will be critical; and what is happening with consumer

spending in the current March quarter will now determine what happens to rates."

- AUD/UDS trades at $0.6753, little changed. A fall below Wednesday's trough

at$0.6737 would draw bearish attention to the Oct 16 low of $0.6724. Bulls note

the recent hammer candlestick formation, hoping for a rebound above $0.6777,

Wednesday's peak. This would expose the former breakout level at $0.6800.

- Q4 terms of trade headline the local docket, with PPI and private sector

credit due Friday. As a reminder, the RBA meets next Tuesday.