BELL FX, CMC Markets Currency Outlook: The Australian dollar has opened near USD 104.50 after an up-and-down offshore session with the local currency's momentum gaining traction as a reponse to the Reserve Bank's decision to maintain benchmark rates at 3%.

Australia: This morning the Australian dollar was at USD104.48, down slightly from yesterday's close. The Australian dollar reached its highs as offshore traders responded to the Reserve Bank of Australia's decision to leave the cash rate unchanged at 3.0%, notes Bell FX analyst Ms. Rebecca Kelly.

AUDUSD continues to climb within a broader channel as RSI indicates upward momentum remains intact. Picking up off a higher low near $1.0390 with initial resistance near $1.0500 followed by $1.0610, according to CMC's head of analysis for North America, Mr. Colin Cieszynski.

Mr. Cieszynski adds that the NZDUSD has broke out in early morning trade today, driving through $0.8400 which may become support. He adds that based on the RSI, it suggests an upward momentum accelerating and that a retest of the channel high near $85.00 appears possible in the near term.

The RBA's decision to keep interest rates steady helped push the local currency and the NZD higher, but the other economic data including the low commodities prices held the Aussie dollar down, analysts point out.

RBA governor Glenn Stevens said there were a number of indications previous interest rate cuts were having "an expansionary effect on the economy" and that "Further such effects can be expected to emerge over time."

Economic news today, the Australian Bureau of Statistics will release the February trade balance and the Housing Industry Association is due to publish new home sales figures for the same month. The economic data, however, is unlikely to offer direction to currency markets unless big changes in the trade balance take place, Bell FX say.

Majors: It was a positive session for equity markets overnight despite the slightly disappointing European PMI Manufacturing surveys.

However, the EUR/USD and GBP/USD weakened overnight (pushing USD higher), as did commodities oil and metals.

The Cypriot Finance Minister Michalis Sarris resigned after less than five weeks in the job, as the government begins an investigation into how the country's economy nearly collapsed last month.

The minister, a former World Bank official who helped negotiate Cyprus' euro membership in 2008, has come under strong criticism for his handling of the bailout negotiations. Moreover, he was last year the head of Laiki Bank, one of the troubled banks at the heart of the country's financial problems. Mr. Sarris told reporters that he decided to step down to not compromise the work of investigators.

Economic Calendar
03 APR AU Trade Balance Feb
AU New Home Sales Feb
CH Non Manufacturing PMI Mar
CH HSBC Services PMI Mar

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