Source : Free On-Line Dictionary of Computing

peephole optimisation
     
         A kind of {code optimisation} that considers only a
        few adjacent instructions at a time and looks for certain
        combinations which can be replaced with more efficient
        sequences.  E.g.
     
        	ADD R0, #1
        	ADD R0, #1
     
        (add one to register R0) could be replaced by
     
        	ADD R0, #2
     
        (1995-03-28)