Aussie edged higher against the pound, supported by a rise in commodity prices

Trading between this pair was relatively subdued yesterday with the aussie dollar creeping ahead by the close of play, helped by a jump in the price of gold.

  • Support for the aussie remained dulled as investors continued to be discouraged following weaker than expected retail sales data.
  • Although sales were improved from September, the data still revealed a month on month decline in overall sales value, some way below the anticipated 0.5% increase.
  • However, the Australian currency did find support from solid equity and commodity prices, with gold in particular rising to just shy of $1100 per ounce after India’s central bank bought 200 metric tons of the precious metal from the International Monetary Fund.
  • Analysts noted that risk on is still the general theme running through foreign exchange markets, which is buoying the aussie, however moves are relatively small ahead of two days filled with data and event risk.
  • The pound is trading slightly higher this morning in the wake of slightly lower gold and stock prices, although the continued prospect of a higher-yield in the aussie is maintaining its strength.