3:00 PM (NZT) This pair bounce nicely off support at .6380 (resistance GBPAUD 1.5675) as the risk appetite increased across all markets on Tuesday. The spike in demand for growth assets was driven by a combination of better than expected economic data, bond auction results in Europe and “sold position” covering. The markets has been very “sold” EUR, and risk assets in general. As we have seen over the last couple of months on three occasions now, the scramble to cover these overweight positions is akin to a crowd rushing through a door. At any rate, the risk appetite waned overnight as the ECB conducted their 3 year liquidity operations and the huge demand has illustrated how financially challenged many of the European banks are. Numerous rumours of further sovereign credit downgrades will not help sentiment ahead of Christmas. This may lead towards further downside potential for the AUD on this pairing in the short term
 
The current interbank midrate is:                                                            AUDGBP .6422                               GBPAUD 1.5571
                                                               
The interbank range so far this week to date has been:                 AUDGBP .6374 - .6494                GBPAUD 1.5689 – 1.5389