The general feeling I’m getting from the interbank market is that they see more possibility for a topside surprise after the CPI data, which will be released at 01:30 GMT. The market has now discounted any further rate hikes and, after Westpac’s call a few weeks ago that rates will soon start to fall, the focus has been more to the downside. The slightly less hawkish RBA statement reinforced this view. Dealers think that the danger is we get a higher than expected number which could catch the market unprepared and trigger option-related stop-loss buying through the previous high at 1.1010. (If it happens I am looking to buy any large dips in EUR/AUD).