Aussie strengthens initially after G8 meeting

The Australian dollar strengthened against sterling overnight as the outcome of this weekend’s G8 meeting held no surprises in terms of currency.

• Although there is still some support for investors taking on more risk, market optimism still remains guarded.
  
• So despite some signs that the UK economy may be starting to bottom out, investors will likely remain cautious until there are signs of economic growth, rather than diminishing contractions.
  
• No significant data is due out of Australia or the UK today so direction is likely to come from broader market movements.