Aussie dollar makes small gains over the weekend

The Australian dollar made small gains against sterling over the weekend, as investors took a breather from recent gains in equity markets and an improvement in risk aversion. Last week markets were largely dominated by the Federal Reserve's decision to start quantitative easing. Investors will now turn their attention to a number of data releases due this week, which includes UK inflation and retail sales figures along with GDP and current account data. Sterling has remained under pressure in recent months after a continuous stream of poor economic results. The key question remains how much more negativity can the market build into the pound. Some in the market believe sterling is now undervalued.