Aussie dollar makes small gains following Obama's housing plan

The Australian dollar made small gains against the pound yesterday, on the back of improved risk appetite from optimism that a US housing bailout plan may boost the global economy. However, the optimism was only temporary, as a fall in Asia stocks and speculation about the Japanese recession forced investors to sell off the high yielding aussie. The pound is still likely to remain under pressure on the prospect of further monetary easing by the BoE, including quantitative easing. Earlier in the day data revealed Britain's budget deficit for the fiscal year is at a record high. Public sector debt was also at a record 47.8 percent of GDP. Investors will largely focus on UK retail sales figures and equity markets for direction today.