Aussie dollar makes gains against the pound

The Australian dollar clawed back further ground against sterling yesterday, after stock markets gained ground following renewed optimism in the US about a new stimulus plan. This gave some relief to investor risk aversion, which helped the aussie hold on to much of its previous gains. As expected, the Reserve Bank of Australia cut rates by 100 basis points. The market was also given a boost with the government announcing a A$42 billion stimulus package. However, while many took this as a positive some in the market argued that due to the global factors at play it would still not help the Australian economy from heading into recession.