Australian dollar trades within recent ranges

The Australian dollar traded within recent ranges against sterling yesterday, as a public holiday in the UK kept trade thin.

• Recent optimism over the possible recovery of the world economy, and the subsequent rise in risk appetite, are now starting to dwindle.
  
• More positive economic data to support the view that the world economy is recovering significantly is likely to be needed to extend demand for riskier assets.
  
• If positive data is not forthcoming then the optimism that has supported the aussie in recent weeks could diminish further, undermining the higher yielding currency.