Australian dollar falls off recent highs

The Australian dollar fell off recent highs against the pound yesterday, as UK markets played catch up after a public holiday on Monday. Despite an initial rise in share markets they eventually finished down as investors took profits ahead of key economic releases. Thursday's official release of stress testing on US banks remains a major hurdle for the financial sector, so investors will be reluctant to take on further risk. UK PMI figures will be the main focus today, although direction over the next few days is likely to be driven by broader market movements.