The pound continued to lose ground to the aussie dollar yesterday, dipping back below 1.80 as Fitch rating agency commented on the fragility of the UK’s AAA credit rating.
- Sterling slipped back sharply as Fitch released the news in the early hours yesterday morning, with investors concerned about the long term health of the UK economy.
- However, sterling pulled back steadily from its sell off following a survey from the UK’s Royal Institution of Chartered Surveyors, which said its measure of house prices rose to +34, its highest in nearly three years.
- In addition, the British Retail Consortium said the value of like-for-like UK sales rose 3.8% in October compared with a year ago, the biggest rise since April.
- In trading this morning, the aussie has made further ground on the pound, although its gains are limited as a raft of data from Australia’s top trading partner, China, did not excite investors as it showed a marked slowdown in loan growth and sluggish trade performance.