Bell Potter

Currency Update: The Australian Dollar is maintaining its value around the 0.9600 level this morning after China's flash PMI manufacturing index data was slightly stronger than predicted yesterday.Money market conditions in China continue to be tighter than several days ago with the 7 day repo rate up 1% on the concern officials may tighten monetary policy in the near term. The RBA confirmed that it would not be paying a dividend to the federal government for last financial year. The government will replenish the RBA's reserve fund with an injection of AUD8.8bn. RBA Deputy Governor Lowe expressed optimism that non-mining investment in the local economy would grow by more than the contraction in mining investment estimated to be 3% of GDP over the next several years. Lowe said growth in the non-mining sector would be in the high single digits. Today's Forecast Range: USD 0.9550 - 0.9650


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