Aussie gains on profit-taking

The Australian dollar made some gains against sterling yesterday, after investors began to take profits on the pound’s recent sharp gains.

• The pound’s fall came despite a much smaller than expected rise in the UK claimant count for unemployment, which should have added weight to optimism about a British economic recovery.
  
• But investors instead focused on the Bank of England minutes, which expressed caution over the UK’s economic outlook.
  
• Further clues on the health of the UK economy will be eyed today, with the release of a raft of data including Retail Sales.