Sterling slows its slide vs the aussie

The pound began to cap its downward spiral against the aussie yesterday, falling just 0.04% to close the day at 1.9555.

• Positive economic data from the US maintained the feeling that the global economy is on the mend with investors buying into higher-yielding “riskier” currencies at sterling’s expense.
  
• Better-than-expected Australian construction work spending supported the aussie’s gains and bodes well for next week’s second-quarter gross domestic product reading.
  
• However, the Australian currency held relatively steady overnight, hovering near its 13-year high against sterling.
  
• Its failure to climb higher has some worried that the aussie may be increasingly over-bought against the pound with a rally in riskier assets possibly slowing.