Hi everyone This thread will provide updates on the pound and Australian dollar. A round up of the latest news from the past weak is below. Sterling has slumped to a six month low against the Australian dollar. The British pound has continued its New Year downward path against the ‘Aussie’ dollar. Why? There are mounting fears that the UK’s economy contracted during the 4th quarter of 2012. Clearly the risk of a return to recession enhances should the first three months of 2013 show no signs of improving growth prospects. Australia’s currency on the other hand has shaken off the recent unexpected rise in the nation’s unemployment rate. Global investors have instead remained more focused on Australia’s all important trade relationship with its largest partner China, who recently delivered an initial 4th quarter Gross Domestic Product result highlighting an annualised growth rate improvement to 7.9%. Australia’s growth prospects should be further enhanced as its second largest trade partner, Japan, looks to expand monetary stimulus measures certainly by 2014, but perhaps far sooner. This Friday’s first release of the UK’s Gross Domestic Product performance for the 4th quarter from the Office for National Statistics will help define the short to medium term direction of this currency pair.