Australian dollar recovers ground on stronger equity markets

The Australian dollar strengthened back against sterling yesterday, as risk appetite came back into favour due to rising equity markets.

• With little economic news yesterday, positive remarks from many of the world’s top central bankers saw demand for higher -yielding currencies rise.
  
• The aussie dollar was also supported overnight by the release of the RBA minutes from their last meeting. The wide range of economic data considered by the Board generally pointed to some improvement in confidence and economic activity, and investors now believe the Reserve Bank has concluded its dramatic sequence of rate cuts.
  
• This morning inflation and retail figures will be released in the UK, marking the start of a series of UK data due out over the next few days. This will be important to the near-term direction of the pound.