Aussie pars gains after weak trade balance figs

Sterling weakened slightly against the Australian dollar yesterday, but recovering overnight after worse-than-expected Australian Trade Balance figures were released.

• The aussie dollar was firm against the pound yesterday ahead of the Trade Balance figures, as investors only anticipated a small deficit.
  
• However, when the figures were released overnight they undermined demand for the Australian dollar, as the figures revealed a trade deficit 4 times larger than had been expected.
  
• Investors will now turn their attention to important US employment figures to determine risk appetite in the market.