Sterling posted gains vs the aussie yesterday but a bullish speech from an RBA official overnight has the aussie trading strongly today

The pound reversed its downward trend against the aussie, but closed someway from its intra-day high as investors started to sell the dollar towards the end of play.

• Risk appetite was soft during trading on the back of negative news from various parts of the global banking industry. In both China and Germany, banks were under pressure to raise funds, which dented demand for high-risk currencies.
  
• In addition, data showed that the US economy in the third quarter grew at a slower pace than previously estimated which reduced demand for higher-yielding aussie.
  
• Further adding to negative risk sentiment was a weaker-than-expected report on US home prices in September, which rose for the fifth straight month, but at a slower rate.
  
• In later trading though, the aussie pared its losses, finding support as a report from the US Fed reiterated the need to hold rates at their present levels.
  
• This morning aussie is broadly stronger following a speech from Deputy RBA Governor Ric Battellino, who said that, "with the economy having only recently entered a new upswing, it is reasonable to assume that we will see this growth extended for a few more years yet."