Aussie gains as risk appetite continues

The Australian dollar made small gains against sterling yesterday, as further upbeat economic data extended investor risk appetite and boosted demand for high yielding currencies such as the aussie.

• UK data revealed an increase in mortgage approvals for April, which continued to bolster hopes of a recovery in the UK economy.
  
• However, markets still remain cautious about the turnaround, so sentiment is likely to remain slow to move.
  
• Sterling was also hampered by a fall in UK share markets, largely driven by news that an Abu Dhabi consortium had sold a large stake in Barclays Plc.
  
• Investors will seek further clues today of a possible UK recovery from the release of Services PMI figures at 09.30 BST.