Bell FX Currency Outlook: The AUD still remains firm as continued stimulus from around the world provides the AUD with a yield advantage.

Australia: The Australian dollar has opened marginally higher this morning trading around the 1.0470 level following a new round of economic stimulus in Japan and some positive US Housing Data overnight.

The local unit rallied in yesterday's session as the Bank of Japan announced it would extend its bond-buying program by 80 trillion yen.

Yesterday the RBA Assistant Governor Kent spoke concluding that the strong growth in Asia will continue to provide significant benefits to the Australian economy.

He noted a possible change in future focus as the development of the economies in the Asian region proceeds and consumption demand will shift from goods to services.

He believes Australia remains well positioned to take advantage of this shift as the Australian economy is closer to the region and has a well-developed and relatively open services sector.

Markets are today awaiting the release of HSBC Chinese manufacturing numbers for September, with numbers unlikely to reflect a rebound as the market is expecting a negative figure.

Majors: European and UK markets moved higher, inspired by the BOJ decision to inject further stimulus into the economy. European equities rose modestly with the FTSE ending 0.3% higher at 5,888 with the German DAX rising 0.6% to 7,391. US stocks ended slightly higher with the Dow ending the session up 13 points at 13,577.

US treasuries saw yields down for the third day in a row. US housing data released last night was strong with existing home sales rising by 7.8% outstripping the prior figure and the forecast. Oil and the USD were weaker overnight with crude losing a further $3.48 to close at $91.81. Most base metals kept a bid tone with copper, zinc and lead hitting fresh highs.

Tonight will see the release of various European manufacturing data along with US manufacturing and jobs data.
Economic Calendar
20 SEPT NZ GDP
US Initial Jobless Claims
US Philadelphia Fed
EU Euro-zone Consumer Confidence

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