Bell FX Currency Outlook: The AUD is trading just above USD0.9900 this morning after falling to a low close to USD0.9870 overnight.

Australia: Events in Greece continue to be the dominant driving factor for the AUD at the moment, with the ongoing uncertainty likely to lead to further falls in the local unit.

The next key support level is seen around USD0.9860, but with little local data due for release today, it seems that we may see the AUD hover around USD0.9900 for today's session. The next key test will likely come in the offshore session when Europe once again becomes the focus.

The majority of financial institutions have been reissuing their AUD/USD forecasts of late, with most revising their forecasts down by reasonable amounts.

Expectations for Chinese growth, the Australian interest rate outlook and the instability in Europe have all been identified as factors affecting the revisions.

Majors: Financial markets remain extremely nervous about developments in Europe. There is increasing speculation that Greece will leave the Eurozone, and given we now have to wait until next month for another Greek election, the nervousness is not going to dissipate any time soon.

We're in a risk off environment with investors retreating into the relative "safe-haven" of USD assets. In order to calm market fears policymakers in Europe may need to put together, and communicate to the market, a proposal for how they would act if Greece were to leave the Euro-zone.

A disorderly exit could be disastrous for the European economy, and as a result, the rest of the global economy. At least German Chancellor Merkel and the newly elected French President Hollande were able to put on a united front after their overnight summit.

Economic Calendar
17 MAY AU Average Weekly Wages FEB
JP GDP Q1
US Leading Indicators APR