Pound caps losses vs aussie

Sterling finally reversed its downward slide against the Australian dollar closing marginally up at 1.9589.

• The US economy suffered a minor setback yesterday after data was released revealing worse-than-expected core durable goods orders for July, which dulled investors risk appetite and hurt the higher risk currency.
  
• Additionally, the data encouraged investors to lock in profits made in aussie-denominated assets held last week, which allowed the pound to recover some of its losses.
  
• A fall of 1.5% in the Nikkei 225 index further hindered the Australian dollar due to the commodity driven nature of the currency.
  
• This morning however, the aussie recouped its value after a surprising jump in business investment last quarter suggested the economy is growing faster than expected, underpinning hopes for a rate hike later this year.