Aussie eventually found traction as risk return, but found little support from the 0.25% rate rise

The pound steadied itself against the aussie after a sharp fall on Monday, edging slightly higher yesterday as markets speculated that the RBA may now slow its rate of tightening.

• Early on Tuesday morning, the Reserve Bank of Australia made their third rate rise in row, adding another 0.25% to the base rate, which now stands at 3.75%
  
• In lieu of the news the aussie did back off slightly against sterling, with the price briefly pushing back over 1.80, as investors anticipated that the RBA may now pause and wait for the economic data before they tighten monetary policy further.
  
• However the aussie was able trim losses as global equity markets climbed higher and gold prices hit a record high for the second straight day.
  
• In trading this morning, the aussie is moving higher, currently up over a half a cent, as fears ease over the impact of the Dubai debt crisis, increasing appetite for riskier assets.