The high-yielding aussie posted solid gains against the pound, supported by a return to risk

The aussie dollar trading strongly yesterday, advancing near 1.4% against a broadly weaker pound, as the UAE central bank eased concerns about the health of Dubai's financial sector.

• The news buoyed demand for riskier assets, which had come under pressure last week as Dubai's debt issues undermined confidence in the global economic recovery.
  
• Adversely, the pound came under heavy pressure during trading in the wake of a UK consumer confidence survey that showed the lowest rating in ten months.
  
• In the early hours of this morning, the aussie found renewed support after the Reserve Bank of Australia decided to raise their base interest rate by a further 0.25%.
  
• The aussie dollar has backed off slightly following the initial spike following the RBA's decision, as the upward rate movement was in line with market expectations and had already been priced in.
  
• Analysts now expect that the RBA may slow their rate of tightening, having raised rates for three straight months, which will enable other nations to close the yield gap.