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[zoe147]

Aussie remains firm after the release of stronger than expected house price inflation overnight that reinforced expectation for another rate hike from RBA this week. Q4 house price index rose 3.2% qoq, 12.3% yoy, beating consensus of 3.0% mom, 11.8% yoy. Dec trade deficit shrank more than expected to -1.936m with imports being flat and export rising 1.0%. RBA will announce rate decisions tomorrow and markets are pricing in around 80% chance of a 25bps to 7.00%. Headline rate of inflation accelerated in Q4. RBA's two preferred measures of inflation, the trimmed mean CPI and the weighted median CPI, both accelerated too, to 3.4% yoy and 3.8% yoy, above the central bank's 2%-3% annual target band. Economic growth remains robust. GDP rose an impressive 4.3% on a year-ago basis in Q3, fastest pace in three years. Aussie remain support generally on such expectations.

Elsewhere, the Japanese yen weakens mildly following strength in Asian stock markets. The economic calendar is pretty light today. UK PMI construction is expected to droop from 56 to 55 in Jan, reaffirming that BoE will cut rates later this week. Eurozone PPI is expected to climb from 4.1% yoy to 4.3% yoy in Dec. From US, factory orders is expected to rise 0.5% in Dec.