Aussie gains another 2 cents vs sterling

Sterling’s brief gains against the aussie on Wednesday were short-lived as it lost over two cents (1.0%) yesterday to close at 1.9384.

• Sterling suffered a substantial setback yesterday on the path to recovery following particularly weak business investment data that emerged well below its predicted level for the quarter.
  
• In addition, strong data was released in Australia in the early hours of this morning that saw a huge rise in private capital expenditure, reaffirming support for their economy recovery.
  
• The 3.3% figure was a vast improvement on the previous quarter of -7.3%, and pushed the pound down below the 1.94 level.
  
• Data from Australia has been relatively strong recently, suggesting that economy has a fair bit of momentum, and traders are now speculating that the Reserve Bank of Australia could raise interest rates as early as October.