Bell FX Currency Outlook: The Australian Dollar has started this week just under the .9400 mark as most of the volatility in financial markets which increased after the Malaysian Airlines disaster and the escalation of the conflict in Gaza dissipated.

Australia: The AUD as well as most major share indices recovered on Friday as the nervousness in financial markets reduced after the horrific
disaster in the Ukraine and the escalation in fighting in the Gaza between Israel and Hamas.

Volatility in all financial markets which spiked on Thursday came down on Friday although is slightly higher than before these two major events. On the economic front it looks like a quiet week ahead but geopolitical events could easily change this.

On Wednesday in Australia we will see the local CPI data for Q2 where most analysts expect a rise in the CPI of 0.6% qoq and a yoy result at 3%. Tomorrow we will hear RBA Glenn Stevens speak and Assistant Governor Guy Debelle will participate in a panel discussion. Any comments they make will be closely watched.

Majors: On Friday, we heard that property prices in 55 of 70 major cities in China fell in June from May as developers announced they would cut
prices and there would a relaxation of property restrictions to encourage more sales and activities in the property sector. In the US, the July preliminary University of Michigan consumer confidence survey fell to 81.3 from its June level of 82.5. The NZD has a slightly weaker tone since this
next rise is expected to be the last for at least several months.

Today financial markets are closed in Japan due to the Marine Day holiday.

Economic Calendar
21 JUL NZ Net Migration SA
NZ Credit Card Billings MoM
US Chicago Fed Nat Activity Index

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