The pound to Australian dollar exchange rate is 0.102% higher on the day with 1 GBP = 1.5242 AUD. The British Pound continued its downtrends against the Australian dollar yesterday, with higher-yielding assets back in favour. "With global stocks recovering from the panic we saw in August, the prospects for the aussie dollar are improving. Weak US data will push the Fed closer to QE3, which will weaken the dollar in favour of risk assets, whilst strong US data further boosts stocks and riskier currencies," says a note from UK money transfer company Caxton Fx. Chinese manufacturing PMI is expected to improve this evening, which should provide some momentum for the Australian dollar. In addition, Australian retail sales are expected to tick upwards, so sterling may well make further losses here. For now this pair trades just under 1.53. New Zealand dollar Improved risk appetite drove the pound yet lower against the New Zealand dollar, helped by further gains in Asian stocks. The New Zealand dollar is trading at a four-week high against the dollar and the pound at present, as investors return to riskier currencies. Poor kiwi business confidence data hit a four-month low last night, but this failed to dent the New Zealand dollar’s outperformance. GBP NZD is trading just under 1.91 and risks remain skewed to the downside for this pair. The bounce in demand for risk currencies has been remarkably strong in the past ten days and bodes well for the Antipodean currencies.

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