Commentators said that there could be a run on the pound and there are some very substancial bets against the pound being made which has seen it fall. Australia raised rates which just made it an even more attractive currency compared to the pound. The pound seems to be under a very dark cloud at the moment and good news seems to keep coming from Australia (Except buliding approvals down 7%). One thing that also seems to have affected things is the fact Labour and the Conservatives are getting much closer on the opinion polls so the election is now looking a tighter race. I will keep you posted on developments but for now we are down to 1.66 which must be very depressing if you hold Sterling.
(This should not be taken in any way as financial advice)