AUD Morning report

The Australian dollar reached new 12 year highs against sterling overnight, as speculation that the global economy is beginning to turn continues to drive demand for riskier assets and high yielding currencies. With further positive data from the US and robust domestic retail sales figures, the aussie edged its way toward the 2 mark. Given the plethora of data due out over the next 24 hours investors will still remain cautious in what is likely to be a time of high volatility. Focus will be on interest rates decision from both the BoE and ECB today - the British central bank is predicted to leave rates on hold, but investors will monitor whether they give any further clues on future plans to increase the credit supply in the economy.