Australian dollar undermined by fears over swine flu

The Australian dollar weakened against sterling yesterday, as fears the swine flu virus may spread globally saw yet another threat which could hinder a world economic recovery. The aussie relies heavily on commodities for its export income and usually remains vulnerable to possible threats to world trade. The flu virus caused higher risk aversion, which has generally overridden economic data. UK figures released revealed house prices in the UK fell by 10.1 percent in April compared to 12 month ago.