Conflicting data of aussie inflation and the UK economy moving out of the recession led to minor gains for the pound.

• Australian CPI data showed that inflation was up higher than expected last quarter. The figure rose to 0.5%, higher than the forecast 0.4%.
  
  
• This lead to an increase in demand for the aussie dollar as it heightened the expectations that interest rates will rise after the next meeting of the central bank.
  
  
• Data showing that UK has finally emerged from recession allowed the pound to par its gains, though demand remained weak with the figures disappointing expectations.
  
  
• Putting real pressure on the aussie though is the continued wave of risk aversion that has swept the markets following China's decision to curb spending, and the pound has continued to gain marginal ground this morning.