Bell FX Currency Outlook: The Australian dollar has opened marginally lower this morning, as weaker US economic data and rumours of a possible downgrade to France's credit rating saw a cautious mood return to the market.

Australia: Positive Spanish and French Bond auctions did little to inspire the markets, with the large majority finishing lower overnight. In terms of data release's during our local session today, we have the Australian Import Prices for the March quarter, as well as the Business Sentiment Survey out of China; both due for release at 11:30am (AEST).

These releases are unlikely to have a large impact on the AUD, and with markets awaiting outcomes of the IMF meetings which are taking place this weekend, we expect our local currency to remain subdued.

Majors: Demand for Spanish bond auctions was relatively solid overnight, with EUR 2.54bn worth of 2 and 10 year bonds sold; although there were some jitters as yields rose.

The French auction was better received by markets with 7.79bn worth of short and long term bonds sold. European equities mainly fell overnight with the German DAX off 0.9% to 6,732 and the FTSE 100 closing unchanged at 5,745.

Over in the US, investors pushed markets lower as softer than expected data outshined better than expected profits for Morgan Stanley and EBay. Initial Jobless claims were higher than expected at 386k and housing sales fell for the third time in the last four months.

The S&P 500 closed 0.6% lower at 1,377, with the Dow Jones off 0.5% at 12,964. Commodity prices were mixed with Gold and Oil prices little changed at USD 1,642.5 an ounce and Brent 0.1% lower at USD102.6 per barrel.

The main focus for markets tonight will be on the IMF and G20 Central bankers meetings. The IMF chief Christine Lagarde has received USD320bn in pledges to expand the IMF's funding.
Economic Calendar
20 APR AU Import / Export Price Index Q1
CH MNI Flash Business Sentiment Survey APR
UK Retail Sales MAR