Demand for the aussie was subdued yesterday after the RBA struck a less hawkish tone than expected in their last meeting

The pound rose to a one-week high against the aussie, extending its gains as investors pared back bets that the RBA would raise their rates again this year.

• The Australian dollar suffered as investors scaled back speculation of an imminent rise in interest rates following the release of the minutes of the Reserve Bank of Australia's November meeting.
  
• The market had quickly priced in successive hikes after the RBA raised rates by 0.25% back in October, however, the minutes were less hawkish than many had expected, which gave investors the opportunity to cash profits, weakening the aussie.
  
• In addition, investor risk appetite did showe signs of fading yesterday as a rally in the US dollar helped pull equity markets back from 2009 highs and commodity prices flattened.
  
• In trading this morning, sterling has slipped closer to 1.80 as investors remain cautious of the UK currency ahead of important BoE policy information to be released at 09:30.