Bell FX Currency Outlook: The Australian Dollar continues to remain under pressure trading to a new 3 month low of US 1.0150 late yesterday.

Australia: The Australian dollar has rallied off a three month low against the US dollar this morning alongside a gain in iron ore prices overnight.
The local unit has suffered a sharp pull back over the past seven days - tumbling more than three and a half US cents.

The US dollar was stronger against most currencies in light public holiday trade overnight with the Australian dollar the exception. The dollar fell to a fresh three month low of 1.0150 against the Greenback in yesterday's trade, recovering back above 1.0200 overnight.

The dollar moved higher as Eurozone finance ministers held the inaugural meeting of the ESM (European Stability Mechanism) in Luxembourg. The ministers declared the Euro 500bn (ESM) operational and discussed the next tranche of Greek bailout funds, whilst playing down the likelihood of Spain requiring assistance.

Domestically today the market will focus on the RBA deputy governor speech at midday. Markets will watch the speech closely given the currency's recent weakness.

Majors: It was quiet US session overnight with US bond market closed for the Columbus Day holiday. Equities pulled back in light trade amidst
expectations of a weak company reporting season on the cards ahead.

Both the DJIA and S&P 500 ended 0.3% lower at 13,589 and 1,457. European Equities declined as the World Bank cut growth forecast for the East Asian region. The German DAX ended 1.4% lower at 7,291 whilst the FTSE declined 0.5% to 5,842. Metal prices were generally weaker; copper prices fell amidst a stronger US dollar ending 1.4% lower at USD$ 8,180.00.

Iron Ore was the exception, rising sharply (6.0%) to USD $110.4 per tonne. Oil prices were marginally higher in choppy trade with Brent ending the session at USD $112.2 per barrel and WTI futures ended at USD $89.70 per barrel. Spot Gold declined overnight on profit taking, ending at USD $1,776.00 an ounce.
Economic Calendar
09 OCT AU Nab Business Confidence
AU RBA's Lowe Speaks
UK Industrial Production
US NFIB Small Business Optimism

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