Australian dollar hits new decade highs

The Australian dollar reached new decade highs against sterling yesterday, before falling back to recent days ranges. Recent optimism that the global economy is starting to turn has helped demand for riskier currencies such as the aussie. Markets will largely focus on UK data today, with the release of manufacturing PMI and Mortgage lending. The M4 money supply growth data could also take on extra significance as it may provide an initial indication on whether the BoE's quantitative easing programme is starting to work. However, trade is likely to be relatively thin with European markets closed today and a public holiday in the UK on Monday.