Bell FX Currency Outlook: The Australian dollar opens at
USD0.9950 this morning having re-tested parity overnight. The
AUD found support on reports that the German Central Bank
was considering purchasing Australian dollar assets.

Australia: Yesterday RBA Governor, Glenn Stevens told the federal
government's economic forum in Brisbane, that the high Australian dollar
was good news for consumers. He also said that he expected our terms of
trade to remain high for a long period due to Asia's demand for resources.
He made no comment on the recent movements in the cash rate. As
mentioned above, the AUD found support on reports in The Australian,
that Bundesbank is considering adding Australian dollar assets such as
bonds to its foreign currency holdings. This follows the Russian Central

Bank which has recently added Australian dollar assets to its portfolio. On
this news, the AUD once again tested parity but failed to break Mondays
high of USD1.0010 and closed lower on the back of weaker May US retail
sales and Spanish government debt downgrade. Ahead of Greek elections
on Sunday, the AUD will struggle to hold any gains above USD1.0000.
Majors: Markets consolidated overnight and EUR/USD strengthened due
to some position squaring ahead of Greek election on Sunday. US May

Retail Sales reported a drop of 0.2% following a similar drop in April. This
pushed the DJIA down 77 points and S&P 500 index down 9 points. After
the close, Moody's rating agency downgraded Spain's government debt
from A3 to Baa3 with a negative outlook. The Baa3 rating is one notch
above "non-investment grade" status or "junk". The rating's agency stated
that the EUR100billion rescue plan for Spanish banks will further increase
the government's debt burden.

The UK Telegraph newspaper reported
overnight that Greeks are withdrawing up to EUR800mio per day from
banks and stocking up on basic food supplies ahead of Sunday's election.
This money is being transferred into German Bunds and US Treasuries.
Tonight sees the release of the US CPI data for the first quarter as well as
an Italian bond auction.
Economic Calendar
14 JUNE AU Consumer Inflation Expectation JUN
EU Euro-zone CPI MAY
US CPI MAY
US Current Account Balance Q1