Bell FX Currency Outlook: Positive economic sentiment out of the US and China, coupled with strong domestic jobs data, has seen the AUD surge higher and open back above USD1.0400 this morning.

Australia: In what was definitely a risk on session overnight, market anxiety that was seen earlier in the week took a back seat as markets recouped losses. Rumours that China's first quarter GDP (due out at midday today AEST) will surprise on the upside and could be released as high as 9%, have helped spur the Aussie's rally.

Domestic employment data significantly beat market expectations yesterday, with the unemployment rate holding steady at 5.2%, while 44,000 jobs were added against the expectations of an increase of 6,500.

Markets are still pricing in a domestic interest rate cut when the RBA meets in May, but expectations of a follow-up cut in June have abated somewhat given yesterday's result. Chinese GDP will set the tone not only for today's trading, but moving into next week also.

Better than expected growth will see the Australian dollar test higher.

Majors: US and European markets rallied overnight with the S&P 500 and Dow Jones both adding 1.04% to close at 1,388 and 12,987. The FTSE 100 and German DAX both closed 1.0% higher at 5,710 and 6,743. US data was mixed, with the Trade Deficit for March coming in smaller than expected at -USD46.0bio.

US jobless claims were slightly worse than expectations with 380k filing for benefits versus an expected 355k. Oil prices also benefited from Chinese growth rumours with WTI closing up 1.0% at USD 103.69 per barrel and Brent rising 1.4% to USD 121.85.

A weaker US Dollar saw gold prices rally ending the session higher at USD 1,675.65.
Economic Calendar
13 APR CH Real GDP 1Q
CH Industrial Production MAR
UK PPI Input / Output MAR
US CPI MAR