Aussie falls on weak data

The Australian lost ground against sterling yesterday, as weak data out of the US hurt global optimism for a global economic recovery.

• The weak data led to investors taking a breather from buying riskier assets, including the high yielding aussie.
  
• Sterling was given some support after the release of surprisingly strong UK services data and consumer confidence rising to a 6 month high.
  
• Investor focus today will largely be on rate decisions by both the Bank of England and the European Central Bank.
  
• The BoE is expected to keep rates on hold, however investors will eye any further announcements on the bank’s quantitative easing programme.