Aussie dollar recovers from weekly lows

The Australian dollar recovered from weekly lows against sterling yesterday, after the Bank of England minutes revealed that quantitative easing was probably imminent. The minutes revealed that the policy makers were unanimous in their decision to seek government consent for quantitative easing by buying gilts and other securities. It remains unclear whether the BoE will cut rates again when they next meet in March, but it is clear that going forward alternative methods will become the main tools for monetary easing. Meanwhile other data revealed British factory orders fell at their fastest rate since 1992, adding further misery to the already deteriorating economy. The aussie may be limited in its gains as weak economic data across the globe, and continuing concerns over the financial sector, keep investors wary of taking on too much risk.