A strong aussie dollar fails to regain losses incurred against the pound

The pound continued to advance steadily against the Australian dollar yesterday, buoyed by renewed confidence in the UK economy.

• The pound advanced nearly a cent (0.5%) against the aussie yesterday, as investor demand returned to the UK currency as the BoE left both interest rates and QE unchanged.
  
• Having suffered recently from a lack of confidence in the economy, sterling was given firm support as the BoE’s decision steadied investor concerns about the strength of the UK’s recovery.
  
• The aussie also continued to suffer throughout the day from an increase in monthly unemployment, and soft retail sales for July, which undermined hopes for an early rise in interest rates.
  
• Robust Chinese economic data earlier this morning, which has boosted commodity linked currencies against the dollar, was unable to prevent the aussie from sliding further against the pound, which is currently trading another 0.5% up for the day.