Sterling hits two-week high vs. aussie

The Australian dollar reached two-week lows against sterling yesterday after equity markets and commodity prices fell.

• The high yielding and commodity based aussie was one of the hardest hit as investors again became risk averse.
  
• However, confidence in an imminent UK recovery still remains shaky, particularly after IMF chief Dominique Strauss-Kahn stated that although there were signs that the world economy may be slowly crawling out of recession, the worst of the economic crisis was still not over.
  
• Today investors will eye key UK inflation data for further direction.