A weak sterling edged lower against the aussie yesterday but investors are paring back their risk trades this morning

The pound slipped back below 1.79 against the aussie dollar, under pressure from weak UK services data and as positive news from the Bank of America boosted risk.

• In early trading, the Bank of America announced that they are going to start repaying taxpayer bailout funds, which gave a boost to investor confidence, lifting perceived riskier currencies to the detriment of the safe-haven currencies.
  
• In the UK, weaker-than-expected services sector data raised concerns over the strength of the economic recovery, which put the pound on the back foot throughout the day.
  
• In trading this morning though, the price is moving back in sterling's favour as investors lock in profits to protect themselves against sharp market moves before key US employment data later this afternoon.
  
• The monthly non-farm payrolls data tends to spark choppy trading and investors typically turn cautious ahead of its release, exiting long positions in "riskier" currencies.