Bell FX, FXstreet, IG Markets Currency Outlook: The Australian Dollar remains firm and trading USD 1.0500 heading into the start of the local trading day, but some bearish movement is seen going towards the Easter holiday.

Australia: Heading towards the Easter break, trades are seen to be relatively subdued amidst the wariness arising from the Euro Zone concerns.

Bell FX analyst Leanne Terrett said in terms of fundamentals, it seems the AUD has been somewhat disassociated with the Euro Zone "troubles" of late, in some respects it has been the beneficiary."

Nonetheless, technical analysis shared by Valeria Bednarik, chief analyst at Fxstreet.com, placed the short term outlook for the AUD/USD bearish, as the price stalled below a bearish 20-SMA and as technical indicators point to the downside.

"Below 1.0410, the pair may quickly test 1.0360 static support, while once below this last, the pair has room to extend down to 1.0300/30 before strong buying interest reappears," Ms Bednarik said in a statement.

It may take some time for the markets to take in the full impact of Australia's decision to set the benchmark interbank borrowing rate based on prices from electronic markets and brokers, scrapping the panel of banks after the international Libor-rigging scandal.

The Australian Financial Markets Association, which publishes the benchmark, said in a statement Wednesday that the HSBC Holdings and Citigoup Inc will stop delivering to the rate by end of March.

Majors. The EUR/USD continued to trade below its 200-day moving average, and is now under $1.28 for the first time in four months at $1.2777, as the Cypriot deal sees investors leaving the currency, said IG Markets strategist Ivan Lucas.

Mr. Lucas noted that part of EUR's woes stemmed from Italy, with the failed attempts of Mr. Pier Luigi Bersani fell flat as a vote of no confidence materialised.

The political deadlock coincided with a poor Italian bond auction, with ten-year yields coming in at 4.66%, and only managed to get €1.331 billion away; it expected two billion and in turn heaped more pain on the region.

He notes that today is the last trading day of the month and the final trading day for the quarter, which could make today slightly interesting.

"Most fund managers and hedge funds will have to assess their weightings today, to make sure they are aligned with their respective charters. This may see inflows and outflows from certain asset classes, so watch for bulk moves in or out of equities, due to fund managers reweighting portfolios," Mr. Lucas explained.

Thus, some adjustments in the equity markets as a result of portfolio investments are seen as first quarter assessments appear by mid of next week.

In this environment, Bell FX analyst Ms Terrett said US stocks have grinded higher throughout the New York session, highlighting the desirability of owning US assets.

Commodities oil and gold are both higher, though industrial metals are mostly lower, with zinc and lead leading the move.

The local focus this morning will be on the RBA's February Private Credit, the ABS job vacancies and private
credit data for February (11:30AEST) which are the last significant releases before next Tuesday's RBA meeting.

Given the tentative signs of improvement in the labour market, particular attention will be paid to the job vacancies data.

Economic Calendar
28 MAR AU Job Vacancies
AU Private Sector Credit
NZ Household Credit
UK GfK Consumer Confidence
GOOD FRIDAY AND EASTER MONDAY PUBLIC HOLIDAYS

For latest pricing, ranges, visit

www.bellpotter.com.au

www.igmarkets.com

www.fxstreet.com