Political calm helps sterling vs. aussie

The Australian dollar lost ground against sterling yesterday, following further evidence that the UK housing market is starting to stabilise.

• The RICS survey revealed that UK house prices had fallen at their slowest rate since November 2007. Added to other recent housing data, there is now a strong argument that housing prices may be bottoming out.
  
• The pound also was boosted by Labour MPs supporting embattled Prime Minister, Gordon Brown, helping calm British political waters.
  
• Today a number of industrial and manufacturing figures are due from the UK, which will be eyed closely for any potential improvement. Any data that suggests no further quantitative easing will be required by the Bank of England will be taken as a positive.