Australian dollar recovers from previous day's losses

The Australian dollar recovered from previous day’s losses against sterling yesterday, after data revealed UK retail sales fell more sharply than expected in March. Sterling was also weighed down by a Gilt auction not being fully covered, suggesting a reduced demand for sterling assets. Analysts blamed this in part on the BoE, who created some uncertainty in the market by saying they may scale back their program of gilt purchases if it was especially successful in spurring the economy. Further UK retail figures will be released today.