The pound is gaining against the aussie as risk appetite briefly dulls and sterling demand picks up

The pound posted gains against the aussie dollar yesterday as risk appetite waned slightly with weak data emerging from the US and equities slipping back.

• The US PPI unexpectedly decreased by 0.6% in September, disappointing expectations of a 0.1% rise, which raised concern over the strength of the US recovery.
  
• Data from the US housing market also fell below market forecasts, dulling investor appetite to buy into perceived “riskier” assets, weakening demand for the aussie.
  
• Sterling’s advance was relatively steady though, with the price rising less than 0.4%, as the broad strength of the Australian currency prevented traders from selling their investments in any great number.
  
• In trading this morning, the pound is climbing at a good rate, having been given momentum from upbeat MPC minutes, with the price currently over 1.79.