Bell FX Currency Outlook: The Australian dollar has had a relatively quiet trading session overnight, despite
the political uncertainty created by Kevin Rudd's resignation as Foreign Minister late yesterday.

Australia: Housing data released in the US overnight was received quite well by the market, and as a result, commodity prices were pushed a little higher and the AUD found some buying interest.

However, the local unit is looking a little heavy this morning, and the ongoing speculation over the Labor leadership has the potential to add to AUD volatility in the short term.A number of forecasters are looking for a short term pull back in the AUD.

Yesterday's release of a HSBC Chinese purchasing manager's index wasn't overly encouraging, with a final figure of 49.7 in February, following on from a 48.8 figure in January. Any result below 50 is considered to be a sign of contraction. China is Australia's biggest trading partner and any sign of slowing growth within their economy will more than likely take some of the momentum out of the AUD's recent rally.

Majors: Developments in Europe continue to grab the international headlines. Despite the EUR130bio Greek aid agreement reached earlier this week investors remained concerned that the austerity measures that have been agreed for the Greek economy will be very difficult to implement.

Ratings agency Fitch cut Greece's credit rating to C from CCC, stating that a default by Greece is likely in the near term. The economic environment in the US continues to improve, albeit at quite a slow pace. US existing home sales increased by 4.3% in January - the highest figure in almost two years. In the UK, BoE minutes indicated that some members favour further quantitative easing, which sparked a sell-off in the GBP.

Economic Calendar
23 FEB AU Average Weekly Earnings NOV
UK BBA Loans for House Purchase JAN
US Initial Jobless Claims FEB