Bell FX Currency Outlook: The Australian Dollar is still range trading, currently around the 1.0200's and likely to remain supported today.

Australia: The Australian dollar has opened little changed after a muted performance overnight. The currency rallied to 1.0260 against the Greenback in yesterday's trade as Australian labour force figures were released.

The unemployment rate rose to 5.4% in September from the unexpected downturn in August of 5.1%. Employment figures rose towards the top end of market expectations by 14.5k in September.

Full time employment rose sharply with part time employment declining. The currency stalled overnight and failed to continue the rally trading in a narrow range between 1.0260 and 1.0290. With no domestic data due, and given the currency's muted performance despite positive risk sentiment overnight, we expect the Aussie to remain in a narrow range today.

Majors: It was a positive night of risk sentiment as US jobless claims fell sharply 30k to 339k; the lowest since February 2008. Questions have been raised however, as to the seasonal adjusted figure of one state which may have overstated the fall. US equities were generally higher after the data, although pared gains later in the session.

The DJIA was unchanged at 13,341 whilst the S&P 500 ended the session 0.2% higher at 1,435. S&P downgraded its debt rating for Spain to one level above "Junk" status overnight.

Spanish bond yields fell despite the downgrading as speculation rose that Spain may be more likely to ask for a bailout. The German DAX rose 1.1% to 7,282 whilst the FTSE ended the session 0.9% higher at 5,830.

Escalating tensions between Syria and Turkey saw oil prices stronger overnight, Brent rose 0.9% to USD $115.90 per barrel while WTI Futures rose 1.0% to USD $92.50 per barrel. Spot gold prices rose on the better than expected US jobs data ending the session 0.3%
higher at USD $1,768.00 per ounce.

Economic Calendar
12 OCT EU Euro-zone Industrial Production
US Producer Price Index
US Monthly Budget Statement
US University Of Michigan Confidence

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