The aussie is climbing strongly against the pound, supported by risk appetite and positive employment figures

The aussie continued its climb against the pound yesterday, advancing for the fourth straight day, as the positive data from China encouraged risk appetite.

• Investor sentiment was boosted by Chinese data that showed the country's economy continued to recover. Industrial output in China, Australia's closest trading partner, rose by a better-than-forecast 16.1% in October, which heightened investors' appetite for risk.
  
• Analysts said the news had lifted risk appetite, encouraging carry trade investors to sell the low-yielding dollar to fund the purchase of riskier, higher-yielding assets.
  
• In the UK, the BoE's inflation report disappointed investors, focusing on the uncertainties surrounding growth and reiterating that the Bank is not yet ready to say to the market that it has finished with quantitative easing .
  
• In trading this morning, the aussie has found further support after stronger-than-expected Australian employment data for October, fuelled bets for another interest rate rise this year.
  
• Data showed that 24,500 jobs were actually created in October, confounding forecasts of for a loss of 10,000. It adds to mounting evidence that Australia is at the forefront of economic recovery and currently the aussie dollar is a further cent up against the pound.