Pound/Aussie pushes lower

The Australian dollar was slightly firmer against sterling yesterday, after a further rally in global equities eased investor risk aversion even more. Despite some upbeat data from Germany and the US, sentiment on the UK economy remains largely negative. This was reinforced by housing data which showed that prices fell 11.5 percent on the year in January. Investors continue to remain cautious as upcoming events later today could easily send markets back into an extreme risk aversion mode. Domestically, the BoE minutes from the last meeting are released, as well as unemployment figures. Investors will then turn their attention to the US Federal Reserve decision on interest rates. As interest rates are effectively at zero markets will concentrate on whether the Fed will follow the BoE's lead and utilise unconventional methods to stimulate the economy.