Tropical Cyclone Fina has formed over the Coral Sea, while a tropical low is taking shape near the Top End of the Northern Territory, prompting a 'Cyclone Watch'. Fina was named during the early hours of Thursday morning as it intensified from a low into a Category 1 Tropical Cyclone. This makes it the first Tropical Cyclone named within the Australian region for this 2011-2012 season. At 1am EST (local QLD time) Fina was located approximately 1110km east of Townsville and 940km east-northeast of Mackay. Fina is expected to weaken back below Tropical Cyclone strength during Friday morning, although a secondary intensification is likely during Friday night and Saturday as it transitions into a mid-latitude system. This secondary intensification will create very strong easterly winds over the Coral Sea, which will in turn generate very large seas and swells. The expectation is that this system will not have a direct impact on the Queensland coast (in the form of a coastal crossing), although the arrival of large and powerful swells from late Christmas Day into Boxing Day will create dangerous conditions for exposed parts of the east coast, especially around the Sunshine and Gold Coasts. Holiday makers along exposed parts of the southeast coast would be advised against swimming, surfing, fishing and boating for at least 2-3 days following Christmas. Meanwhile, a developing low located approximately 330km northeast of Darwin (as of 10:45pm CST on Wednesday) may also form into a Tropical Cyclone during Friday or early on Saturday. This system would be named Tropical Cyclone Grant and could bring gale-force winds to coastal and island communities between Dundee Beach and Nhulunbuy (including Darwin) as early as Friday afternoon. This system currently remains slow-moving and there is significant uncertainty on its future track. Therefore it will be worth keeping an eye on the latest updates for this system as its future path and intensity become clearer.