Bell FX Currency Outlook:
The Australian dollar has rallied strongly overnight as investors once again appear willing to take on more risk following positive news out of Europe.

Australia: After breaking back through parity late yesterday, the AUD surged higher throughout the offshore session to record a high above USD01.0200. In what was clearly a case of a "risk on" environment, equity markets, commodities and higher yielding currencies all pushed higher.

Local markets will turn their attention this morning to the release of Australian labour force data for September due out at 11.30 AEST. Market expectations are for the unemployment rate to remain unchanged at 5.3% and for the number of employed to have risen by approx. 10k. Any result which publishes significantly different from expectations could impact the AUD as the market adjusts their expectations for an interest rate cut from the RBA.

A weak number will back the view that the RBA may cut as early as next month, while a strong figure could push expectations for a cut in official rates out into 2012.

Majors: With increased optimism that the European Union may finally be reaching consensus on how to address the region's debt crisis, the EUR found renewed buying interest. The euro surged by over 2% against the JPY and by over 1% against the USD.

After initially voting down the proposed expansion of the European Financial Stability Facility on Tuesday, Slovakia, the last country in the Euro-zone that needs to approve the proposal, has now indicated they expect to pass the proposal
by the end of the week. European Commission President Jose Barroso told the European Parliament that "reactive and piecemeal
responses...are no longer sufficient ", and urged officials to take a "coordinated approach" to recapitalising the region's banking sector.

In the US, the FOMC September minutes were released. Clearly the FOMC members remain concerned about the current state of the US economy, particularly the high unemployment rate.

Economic Calendar
13 OCT AU Employment Change SEPT
AU Unemployment Rate SEPT
CH Imports / Exports SEPT
US Trade Balance AUG