Australian dollar driven to 10 week highs

The Australian dollar was driven to 10 week highs against sterling yesterday, after world leaders announced a trillion dollar deal to rescue the global economy. Investors’ optimism that the worst of the economic decline may be over drove share markets higher and increased the appeal of high yielding currencies such as the aussie. Market optimism was also supported by data on British house prices, which showed an increase in March for the first time since October 2007. Banks also fared better, with the UK government agreeing to back some of RBS's business loans. However, despite the positives for the UK economy, the aussie being a largely risk and commodity based currency continued to fare better.