Sterling trades mixed against the aussie dollar

The pound fell sharply against the Australian dollar yesterday morning, hitting a 3-week low before recovering in the afternoon to finish the day up.

• Sterling fell broadly yesterday morning after weak UK industrial production data fanned further doubts that the economy is poised for a quick recovery.
  The figures showed British manufacturing output fell by 0.5 percent in May, while industrial production shrank by 0.6 percent, in contrast to forecasts for a 0.2 percent rise in both measures.
  
• The pound sank to a 3-week low against the aussie dollar following the data, but recovered ground in the afternoon as investors sold the higher yielding aussie amid growing risk aversion.
  
• Sterling finished the day marginally up against the Australian currency at 2.0449, and has held its ground overnight as signs an economic recovery in Asia was struggling to gain traction deterred investors from buying riskier currencies.