Aussie strengthens back against sterling

The Australian dollar strengthened back against sterling yesterday, after a lack of domestic data saw investors concentrate on equity markets and the US.

• A rise in US consumer confidence, and a subsequent move up in equity markets, saw an increased demand for riskier assets.
  
• This helped support the high yielding aussie, and movements were also exacerbated by continuing thin trade as traders returned to work in the UK and US.
  
• Given the lack of major economic data out of the UK this week direction is likely to continue to come from equity market movements and market confidence.