Bell FX Currency Outlook: With UK markets closed for the Queen's Jubilee celebrations, the AUD has strengthened to be currently trading at USD0.9720 despite a lack of liquidity and very little direction during
the offshore trading session.

Australia: The local currency gained over half a US cent overnight despite offshore equity markets posting flat and poor factory orders data out of the US. The gain in the AUD was mainly due to some USD weakness.

Today all eyes will be focused on the RBA's interest rate decision which is due to be handed down at 2:30pm (AEST). There are varying opinions as to what the RBA will do, with some still predicting that the RBA keep the cash rate steady at 3.75%, and wait for further economic data to show how the previous rate cut has affected the markets.

The Futures market has priced in a 25b basis point cut and majority of speculators are also in that camp to give our economy another little boost.

Another small percentage of economists are calling for a 50bps cut which may be a bit aggressive given the RBA's decision last month. While very hard to predict, whichever way the decision goes today you can expect to see movement in the AUD on the outcome.

Majors: As mentioned above, data out of the US overnight was weaker than expected. Factory Orders for the month of April posted a negative result of 0.6% in comparison to market expectations of a 0.2% gain. This follows on from the previous month's result of -1.5%. US equity markets were flat overnight.

The Dow was down 0.1% to 12,101, the S&P500 was unchanged at 1,278 with the Nasdaq rising 0.5%. The EUR/USD edged higher as upcoming talks between the global finance ministers and a meeting of the European Central Bank later this week helped drive optimism for further measures to ease stresses in the Euro-zone.

The main focus will be the ECB's meeting on Thursday where it is widely expected to cut its key policy rate by 25bps.

Economic Calendar
5 JUNE AU Current Account Balance
AU RBA Cash Target
EU PMI
US ISM Non-Manufacturing