Bell FX Currency Outlook: The Australian Dollar is steady this morning and is remaining well supported going into the weekend, and this is despite a US equity market sell-off late in the session.

Australia: Support for the AUD is now coming in the form of an increasing belief the Reserve Bank of Australia (RBA) won't cut the cash rate at its board meeting on Melbourne Cup day.

Most major currencies were range bound and there is a slight chance the AUD could rally with markets anticipating a basing of activity in China thereby positioning for this in risk reversals.

Yesterday saw S&P change the outlook on NSW's and Western Australia's AAA ratings to negative from stable, while Victoria's AAA stable rating was affirmed with the rating downgrade for NSW driven mainly by concerns for long-term infrastructure needs of the state and its ability to maintain manageable debt levels.

There is little economic data expected in the next 24 hours and we don't expect any large movements in the AUD except for, as stated above, a chance of some mild upside.

Majors: Major currencies were fairly quiet, in a session of consolidation in overnight markets. There was some US economic data in which we saw US durable goods orders rebound and beat market forecasts in September but the more important core orders and shipments continue to disappoint.

Slowing growth in Europe and China and the upcoming presidential election is having its effect on business confidence and investment, not exactly a surprise.

Sweden's Riksbank left its policy rate unchanged at 1.25% but lowered its projected path, stating an easing bias.

The GBP spiked on data indicating the UK emerged from a technical recession in Q3. There is the advance reading of Q3 US GDP tonight as well as the University of Michigan consumer sentiment survey for October.

Economic Calendar
26 OCT NZ Sep Trade Balance
JN Sep Nat CPI YoY
CH Oct MNI Business Sentiment Indicator
GE Nov GfK Cinsumer Confidence Survey
US 3Q GDP QoQ (Annualized)
US U of Michigan Confidence Oct

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