Bell FX Currency Outlook: The Australian Dollar has traded higher through USD 1.0300 in a fairly orderly fashion overnight with market sentiment buoyed by better than expected data in the US and Europe.

Australia: The German ZEW Business Confidence Survey and Euro Area trade data gave the European stock markets are solid boost and in the US, data flow was in line or better than market expectations.

Sentiment was further supported by earnings results from Johnson & Johnson, Goldman Sachs, State Street and Coca Cola.

Yesterday saw the AUD bid despite commentary from the Reserve Bank of Australia (RBA) regarding the mining results going forward.

In the minutes from its October board meeting, the RBA said concerns about the mining sector, plus falling commodity prices, were the reasons behind its decision to cut the cash rate by 0.25% to 3.25%.

In Australia today there are no major data releases but keep an eye and ear out at 12pm AEST for the second US presidential debate as this is very likely to gain market attention.

The key risk that is anecdotally referred to as the US "fiscal cliff" remains a key issue and indeed risk to the global economy.

Looking ahead we expect few moves over the next 24 hours as markets position for the EU Summit and the release of Chinese GDP tomorrow.

Majors: The US dollar was weaker against most major crosses, save the yen as US Treasury yields rose. Oil prices were mixed overnight with US crude oil rising in choppy trade, supported by a weaker US dollar and speculation a Spanish bailout may be imminent.

A German CDU party member stated the government was open to precautionary credit lines for Spain but these comments were later corrected due to the suggestion the media had "misinterpreted" the comments.

Rising US crude oil stockpiles and concerns over economic growth in China and Europe weighed and led to WTI futures rising while Brent oil prices fell 0.4%.

Spot gold prices rose overnight on a weaker US dollar and the slightly stronger-than-expected release of US consumer prices. Base metals prices were generally softer overnight with copper being the exception with prices rising by 0.6% on perceptions of stronger global growth.

Agricultural commodities prices were mixed overnight. Tonight the Bank of England releases the minutes of this month's Monetary Policy Committee meeting and the latest UK unemployment report is due followed by weekly US mortgage applications data and US housing starts and permits for September.

Finally, the German Government releases updated German economy forecasts.
Economic Calendar
17 OCT AU WBC Leading Index AUG
GE German Government Releases Economic Forecasts
UK Bank of England Minutes
US Building Permits & Housing Starts SEP

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