Bell FX Currency Outlook: The Australian dollar has recovered ground trading back above USD1.0500 this morning as global share markets continue to rally.

Australia: The local unit took a tumble earlier in the week as renewed optimism for a US recovery drove the Greenback higher across the board.
A surprise increase in manufacturing for the New York region combined with a drop in US jobless claims for the week bolstered optimism and saw US consumer confidence rise to the highest level since 2008.

The Fed- Philly manufacturing index beat the forecasted 11.9 coming in at 12.5. US jobless claims continue to decline dropping to a four year low of 351k.

The S&P 500 closed above 1,400 for the first time since 2008 as US stocks rallied with the Dow Jones Industrial Average also posting its
highest close since December 2007 above 13,000. With a lack of local data due out today, we expect that the AUD will follow the lead from equity markets, ahead of some offshore data released tonight.

Majors: European markets closed higher off the back of the better than expected US data with German DAX up 0.9% at 7144, the Euro Stoxx up 0.7% to 2594, whilst the FTSE fell 0.1% to 5941.

Speculation that US and UK are in negations to release oil reserves drove oil prices lower with WTI closing at USD 105.32 and Brent closing 1.6% lower at USD 122.55 per barrel.

Gold and metals were also higher with Gold closing up 0.8% to USD 1,658.57 an ounce and Copper increasing 1.8% off the back of the US data to USD 8,565 per tonne.

The GBP also retreated as rating agency Fitch changed is outlook to negative on UK sovereign debt. Locally Moody's has joined Fitch to downgrade Macquarie Group's banking arm by one notch.

Economic Calendar
16 MAR EU Euro-zone Trade Balance JAN
US CPI FEB
US Industrial Production FEB