Australian dollar regains some ground

The Australian dollar has regained some of yesterday’s losses against the pound as a rally in stocks boosted higher yielding currencies. Gains were limited due to brighter UK economic data and a boost by month and quarter end capital flows. Data yesterday showed British consumer confidence rose to a ten month high in March, as lower mortgage repayments boosted disposable income. Sentiment was also helped by Barclays, who declined to take part in the UK government’s asset protection plan, unlike Lloyds TSB and RBS.