Bell FX Currency Outlook: The Australian Dollar remains just below USD 0.9000 after a weaker US dollar suffered against all
the major currencies based on the Japanese economy's outlook.

Australia: In overnight trade the AUD peaked at 0.9025, its highest level since 30 July 2013. The rise was mainly due to offshore scenarios rather than local.

The outlook for the Japanese economy in the near term appears bleaker than recently thought, with the Nikkei stock index falling
4%. The trend for years has been the USD is sold and JPY is bought when bad news emanates from Japan.

The EUR was bid from strong German industrial production data which also contributed to a softer USD.

This morning we see the Australian Bureau of Statistics releasing employment data for July which is expected to show the jobless rate rising to a four-year high of 5.8%.

The number of people with jobs is expected to have risen by 10k in July but not enough to keep up with population growth and the growth of the workforce.

The market will then be turning its attention to the upcoming monthly China July numbers starting with today's trade balance and then tomorrow's inflation and activity data. Chinese trade growth will contain important clues on its economic momentum.

The market is looking for only a modest improvement in exports and imports growth after negative annual growth to June
Majors: The US Dollar slipped again despite more signs that the Federal Reserve could soon begin reeling in its stimulus.

Cleveland Fed President Sandra Pianalto on Wednesday was the third senior Fed official in two days to hint at a taper to the $US85 billion a month bond-buying program soon, but said it would not happen if the jobs market weakens.

While such hints have dampened enthusiasm in equities, amid expectations that interest rates will continue to push higher, sentiment in the FX market was contrary with falling US Treasury yields as well.

Note that in the UK, new BoE Governor Carney, in his first press conference, laid out forward guidance for BoE policy, raising growth forecasts. Elsewhere today, the BoJ announcement won't get much attention with no change to their existing aggressive QE program.
Economic Calendar
8 AUG AU Unemploymen rate / Change Jul
AU Participation Rate Jul
CH Trade Balance Exports/Imports Jul
US Initial Jobless claims Aug 02