Bell FX Currency Outlook: The Australian Dollar has opened relatively unchanged after a subdued session overnight.

Australia: The Australian dollar is little changed this morning following a subdued session overnight. With little data or events to influence the market, currencies traded within recent ranges.

The local unit was range bound during yesterday's session to open at 1.0320 this morning against the Greenback. Domestically the Federal Government announced yesterday a range of new spending cuts and measures to return the budget to surplus in 2012-13.

Japan's Trade Balance recorded a deficit 980.3bn JPY, worse than the expected 760.3bn. This is worse than the post-earthquake deficits of 2011 and the GFC deficit of 2009.

The data will likely see more quantitative easing in Japan. Trading today will likely be similarly subdued ahead of Australia's Q3 inflation data and Chinese October manufacturing data due tomorrow.

Markets are expecting a small improvement in the Chinese manufacturing number with a pullback in the Aussie to be expected if this is not the case. Australia's inflation number is expected to rise for the quarter. A low inflation rate, coupled with the midyear Federal budget update will likely pave the way for a further rate cut when the RBA meet on November 6.

Majors: Overnight equity markets were generally lower as markets look toward US and European data due later in the week. The US Presidential elections are gaining momentum with the third debate held today.

The "Fiscal Cliff" is gaining market attention as the election draws closer. The FOMC are also due to meet later in the week, although no new announcements relating to QE are expected. The S&P 500 ended the session 0.3% lower at 1,429, with the DJIA declining 0.4% to 13,292.

European equities also declined with the German DAX falling 0.7% to 7,328 and the FTSE declining 0.2% to 5,883. Oil prices ended the session lower in choppy trade, Brent fell 1.2% to USD 109.5 per barrel while WTI futures fell 2.0% to USD 88.7 per barrel. Gold prices saw a modest rise of 0.3% to USD 1,728 per ounce, while commodity and metal prices were mixed.
Economic Calendar
23 OCT AU Conference Board Leading Index
EC Euro-Zone Consumer Confidence
US Presidential debate, Boca Raton, Florida
US Oct Richmond Fed Manufact. Index
US Former Fed Chief Greenspan speaks at SIFMA in NY

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