Sterling gains vs aussie following dovish RBA statement

Having continued to lose ground on Friday, the pound has reversed the trend, following the RBA statement in the early hours of this morning.

• With European stocks and oil prices up on Friday, investors’ appetite for risk supported high-yielding currencies like the aussie.
  
• Sterling continued to lose ground yesterday following as investor sentiment was buoyed by the positive news emerging from the Japanese election and the corresponding improved Asian equities.
  
• The Australian dollar as capped its gains this morning however after the Reserve Bank of Australia said current monetary policy was still appropriate and left interest rates unchanged at 3.00%.
  
• Investors had widely expected the RBA to sound more hawkish, but their comments allowed the pound to recover, which is up over half a percent on the day.