Bell FX Currency Outlook: The Australian Dollar has opened stronger this morning, supported by the stream of strong data
out of China.

Australia: The AUD was trading around USD0.9228 this morning, up from USD0.9198 late Monday. The AUD has been driven higher by betterthan-
expected August trade figures out of China.

The figures showed stronger exports to recovering overseas economies caused its trade surplus to widen to $US28.6 billion. The stronger numbers were the latest to boost confidence about the Chinese economy following last week's strong manufacturing numbers.

Also helping to support the local currency was weakness in the USD as investors evaluated the possibility that the Federal Reserve may not follow through with a decisive pullback from its bond buying program later this month.

On the day we have the release of the NAB business survey and the several pieces of Chinese activity data including industrial production, fixed asset investment and retail sales.

Majors: The USD was lower against a host of currencies Monday night following disappointing employment figures Friday. Investors have been
begun reassessing their view on when the Federal Reserve will begin to taper its monetary policy stimulus program.

Initially traders had speculated that US policy makers might begin to scale back its program as early as its next scheduled meeting for next week.

But recently, economic data showing signs that the US economy may not be growing as quickly as previously thought has cast doubts on whether the Federal Reserve will follow through as early as this month. This has prompted a bit of a sell-off of the USD as lower interest rates diminish the appeal of owning the USD.

The USD ended the session lower against the EUR as well as higher yielding currencies such as the AUD and currencies from emerging markets. In the US tonight we have the NFIB Small Business Optimism survey for August.
Economic Calendar
10 SEPT AU NAB Business Confidence
UK RICS House Price Balance
US NFIB Small Business Optimism

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