Bell FX Currency Outlook: It has been an interesting 24 hours, the Australian dollar is higher, after bouncing back from heavy losses that saw it almost hit an three-year low overnight.

Australia: This morning Aussie was trading at about USD 0.9425, up from yesterday. The currency started falling yesterday following weaker
readings on the Chinese economy and after the Bank of Japan opted against increasing its asset purchase program.

A lower than expected rise in housing finance approvals saw the AUD briefly trade below the 2011 low of 0.9388, before scrambling back with some support to above USD 0.9400, despite equity and commodities risk markets down overnight.

In overnight trade, the Australian dollar dropped about 0.01 US cent lower, its weakest level since September 2010. The currency had since rallied
with investors finding its low price attractive.

Majors: The USD suffered a sharp sell off as volatility in currency markets continued. The move looks to have happened in the wake of the BoJ's announcement to leave monetary policy largely unchanged at its meeting yesterday, causing disappointment for those looking for more
support for the bond market and significant strength in the JPY.

We expect that moves in the USD will continue to be volatile in lieu of a clear signal from the US Federal Reserve on tapering. With AUD expected to be soft, the best way to express this view is on the crosses.

Oil prices declined overnight as investors remain wary that central banks around the world could begin to rein in their loose monetary policies. China is on Public Holiday since Monday and markets will resume on Thursday, 13 June.

Economic Calendar
12 JUNE AU Westpac Consumer Confidence Index Jun
AU RBA Credit Card Balances/Purchases Apr
EU Euro-zone Industrial Production Apr