Stocks and commodities have rallied through today’s European and North American trading days, sending some positive momentum into Asia Pacific trading. Last week’s trading was dominated by traders wanting to avoid getting caught offside by a decision by the Fed to cut back QE (tapering) at this week’s meeting. So far this week, traders appear to be more worried about getting caught offside by a no-taper decision, particularly after US Empire manufacturing and flash PMI fell short of expectations. This makes tomorrow’s inflation reports for the US and UK particularly significant for trading. With economies and employment improving, one of the last big worries facing the Fed and ECB has been the prospect of deflation. CPI running near or below 1.0%, could hold the Fed back from tapering immediately in order to avoid pushing inflation over the edge. An improvement in inflation toward the 2% target could increase the chances for an earlier start to tapering. Interestingly, while tapering has been the talk of the town in the US, in Europe, we may see two of the smaller central banks announce interest rate cuts which could weigh on SEK or HUF. Australian markets both the S&P/ASX and AUD could be active today on the release of minutes from the RBA’s last meeting. Traders may be looking toward the minutes for more colour on two areas; the potential that it could cut interest rates in 2014 and how serious the central bank is considering intervening in FX markets to drive down the dollar of if recent talk may be enough for now. Corporate News Boeing announced a 50% dividend increase after the close. Economic News Highlights of overnight announcements include: US flash manufacturing PMI 54.4 vs street 55.0 US Empire manufacturing 0.98 vs street 5.00 and previous (2.21) US industrial production 1.1% vs street 0.6% Germany flash mfg PMI 54.2 vs street 53.0 Germany flash service PMI 54.0 vs street 55.3 France flash mfg PMI 47.1 vs street 49.0 France flash service PMI 47.4 vs street 48.7 Eurozone flash mfg PMI 52.7 vs street 51.9 Eurozone flash service PMI 51.0 vs street 51.5 Upcoming significant announcements include: 10:00 am AEDT Australia leading index previous 0.3% 11:30 am AEDT Australia RBA minutes 11:30 am AEDT Singapore electronic exports street 2.8% 8:30 am GMT Sweden interest rate decision 0.25% cut to 0.75% widely expected 12:00 pm GMT Turkey interest rate decision no change expected 1:00 pm GMT Hungary interest rate decision 0.20% cut to 3.00% widely expected 9:30 am GMT UK consumer prices street 2.2% 9:30 am GMT UK retail prices street 2.7% 9:30 am GMT UK producer input prices street (1.0%) 9:30 am GMT UK producer output prices street 0.9% 10:00 am GMT Eurozone consumer prices street 0.9% 10:00 am GMT Germany ZEW current street 29.9 10:00 am GMT Germany ZEW expectations street 55.0 8:30 am EST US consumer prices street 1.3% vs previous 1.0% 8:30 am EST US core CPI street 1.7% 10:00 am EST US NAHB housing market street 55