Aussie dollar range bound despite rate cut

The Australian dollar remained within recent ranges against sterling yesterday, despite an initial strengthening after the RBA announced a 25 basis point rate cut. The effectiveness of the rate cut was muted, with many of the major banks refusing to pass on some, or all, of the rate cut to consumers. Meanwhile, the pound managed to hold its ground despite UK manufacturing output for February falling by 0.9 percent. The fall was less than forecast but did highlight the continuing weakness in the UK economy. The aussie has failed to make further inroads as global share prices continue to dip, making investors wary of taking on too much risk.