The Australian dollar climbed to an 11-week high against the pound in Tuesday's trading, following comments from Reserve Bank Governor Glenn Stevens that greater stability in the global economy would support the Australian recovery.

This morning however, declines in Chinese equity markets have dented this confidence. China's two major banks have announced a cap on 2009 lending. Any evidence of slow down in the Chinese economy has an immediate impact on Australian currency exchange rates as China is a key buyer of Australaian commodities.

This morning the AUD has declined slightly following the news, with currency exchange rates at 0.5007 to the pound and 0.5799 to the euro.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.