Aussie dollar skids after RBA cut

The Aussie skidded on Tuesday after the Reserve Bank of Australia (RBA) cut interest rates in the first easing in two-and-a-half years, and investors wagered on more. The Aussie fell almost a cent to $1.0432 after the RBA cut its cash rate 25 basis points to 4.5 percent, saying inflation was now likely to be more consistent with its long-term target in 2012 and 2013.
The local dollar last traded at $1.0436, from $1.0521 in New York, having already slid 1.5 percent on Monday after Japan intervened to sell massive amounts of yen for US dollars. This lifted the US currency across the board. The Australian dollar has now fallen 2.5 percent in just two sessions. The New Zealand dollar dodged the Aussie's decline to hold at $0.8057, from $0.8059 in New York. It dropped 1.7 percent on Monday following Japan's intervention.