$A firmer ahead of key inflation figures January 21, 2014 - 5:37PM The Australian dollar is firmer ahead of upcoming local inflation data. At 1700 AEDT on Tuesday, the Australian dollar was buying 88.19 US cents, up from Monday's 87.79 cents. With US markets closed for the Martin Luther King Jr. public holiday, the local currency stayed mainly above 88 US cents during Australian trading hours. But the unit could come under renewed pressure on Wednesday if official inflation for the December quarter is lower than market expectations, Easy Forex senior dealer Francisco Solar says. "If the numbers were to come out in such a way that it even opens the door further for further rate cuts, ... then there could be very well a downward pressure on the Aussie dollar," he said. The Aussie's depressed as it is. Economists are expecting Australia's consumer price index (CPI) to grow by half a per cent during the December quarter for an annual increase of 2.5 per cent, which would be in the middle of the Reserve Bank of Australia's (RBA) two to three per cent inflation target zone. At 1700 AEDT, the Australian dollar was buying 92.22 Japanese yen, up from 91.38 yen on Monday, and at 65.10 euro cents, up from 64.88 euro cents. Meanwhile, Australian bond futures prices were weaker with investors not expecting the inflation data to spark another rate cut, Westpac interest rate strategist Tim Jung said. At 1630 AEDT on Tuesday, the March 2014 10-year bond futures contract was trading at 95.945 (implying a yield of 4.055 per cent), down from 95.970 (4.030 per cent) on Monday. The March 2014 three-year bond futures contract was at 97.100 (2.900 per cent), down from 97.130 (2.870 per cent).