ForexLive Asian market wrap: Australian CPI comes in below forecasts

Australia Q4 CPI +3.1% Vs +3.3% expected: +0.0% QoQ Today's Australian CPI numbers were certainly not definitive when it comes to a February rate cut but the odds are shortening that we get a February cut Some regional markets open but HK and Shanghai still closed Little new in US state of union address Regional stocks +1% on average Gold $1665/oz; Oil $99.30/bbl Another painfully slow afternoon's trade with only the Australian CPI to liven things up during the morning. The AUD/USD spent the morning trading quietly near 1.0480 before dipping sharply to 1.0440 on the headline CPI number. The rebound from 1.0440 to 1.0500 was just as sharp and despite a number which would seem to confirm a February rate cut, the AUD has still made gains on the session. Very frustrating for the bears but an indication of the strength of demand in the market. Ranges: 1.0438/1.0533 The EUR has been fairly quiet trading a 30 pip range, with the Chinese holiday still having an affect and traders staying out of the market ahead of the German Ifo later today. There were no major EZ related headlines and the state-of-the-union also had no effect. Ranges: 1.3013/46 USD/JPY tried to go on with its big overnight rally and AUD/JPY demand was also a highlight. USD/JPY pulled up just shy of 78.00, with solid corporate sell orders helping to cap. Ranges: 77.59/98 Cable 1.5603/27; EUR/CHF 1.2084/98