Investors have yet to decide what to do about GBP/AUD this year. Last week they allowed it to wander aimlessly within a one-and-a-half-cent range, nudging it back towards the centre-line on the odd occasion it wanted to go anywhere. Sterling opened in London this Monday unchanged on the shortened week.
The very few Australian statistics released over the last six days were vaguely positive but far from compelling. AiG's performance of manufacturing and performance of services indices for December – what other countries refer to as purchasing managers' indices – were both improvements over the previous month. The manufacturing index edged above the neutral point into the growth zone at 50.2 while the services figure was less gloomy at 49.0. The construction sector reading was a woeful 41.0 but at least it was less pathetic than the previous month's 39.6. Retail sales in November were flat in comparison with the same month last year.
So far this week, The Australian dollar continues to strengthen as a positive mood remains over the global economic outlook. The focus will be on Europe today with the European Central Bank due to make a decision on interest rates - the Aussie dollar may react positively/negatively depending on the news.