Aussie gains ground after CB data

The Australian dollar gained further ground against sterling yesterday, posting gains for the third straight day as investors bought back in to higher-yielding currencies.

• A recovery on the FTSE and a rally on the Dow Jones yesterday encouraged investors to shun safe haven currencies and buy back in to higher yielders, such as the aussie and kiwi.
  
• The aussie also gained support overnight from the release of the Conference Board Index, which increased in April for the third consecutive month.
  
• The aussie dollar is likely to remain attractive to investors for some time, as Australia currently has the highest yield amongst all the developed countries, with the RBA unlikely to cut interest rates further.