Bell FX Currency Outlook: The Australian Dollar was on a rollercoaster ride last night and enjoyed quite significant swings including a break through USD 1.0400 before settling to yesterday's levels.

Australia: The AUD has traded strongly since 8 October when it was as low as USD 1.0150 and was buoyed yesterday when official data revealed Chinese GDP grew 7.4% in the June quarter which was in line with expectations.

This Chinese data was interpreted in a positive light by markets but overnight trading was generally pretty quiet. Headlines from
the EU Summit in Brussels gave little clarity on the way forward for the euro zone, while US economic data was a little weaker than expected. Skittish scenarios continue.

The market is not expecting any major announcements from this EU summit but it is awaiting the final statement from EU leaders later tonight that may include comments about the single supervisory mechanism for banks and Spain.

Oil prices were weaker overnight on indications of improving supply and a rise in US initial jobless claims, however, the temporary closure of the Keystone pipeline, which carries crude oil from Canada to the US, moderated losses.

Spot gold prices fell modestly overnight, following US equities lower on weaker US jobless claims prompting markets to consolidate recent gains.

Base metals prices were mixed overnight, with copper falling 0.2% to USD $8,205 per tonne as the USD strengthened modestly but data indicating that China's economy is stabilising moderated the decline. Agricultural commodities prices were mixed overnight.

In Australia today there are no major economic data releases or events.

Majors: The US Dollar was a little stronger overnight in a generally quiet night in currency markets which in part was due to ongoing uncertainty about whether Spain will request a government bailout.

The EUR rose to a five-month high against the yen following a solid Spanish government bond auction but then retraced. The sentiment on Wall Street was not helped by the early release of lower-than-expected earnings for Google, along with an unexpected jump back up in weekly jobless claims.

US weekly jobless claims were around expectations as were UK retail sales. As stated above the EC Summit concludes while in the US there's the existing home sales report for September and the UK releases its September public finance report.
Economic Calendar
19 OCT CH MNI Flash Business Sentiment
UK Public Sector Net Borrowing
UK PSNB ex Interventions
US Existing Home Sales / MoM

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