Q4 CPI In Focus

A lack of meaningful catalysts and Tuesday's local holiday made for very limited overnight trade, leaving YM unch. and XM -1.0 in early Sydney dealing.

• Q4 CPI headlines the local docket on Wednesday, with broader expectations looking for steady to marginally lower Y/Y readings across the 3 major metrics. As a reminder, the RBA has stressed that "the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. Given the outlook, the Board is not expecting to increase the cash rate for at least 3 years. The Board will keep the size of the bond purchase program under review, particularly in light of the evolving outlook for jobs and inflation. The Board is prepared to do more if necessary."
• The monthly NAB business survey will also hit today.