The Australian dollar skidded to one-week lows versus the greenback on Tuesday after the central bank sounded less optimistic about growth this year, reinforcing bets that interest rates are likely to stay on hold for longer. This also saw the New Zealand dollar, which hit its highest since late 1981, retreat from the peak. News a strong earthquake rattled much of the country's North Island briefly unsettled the currency.
The Aussie dollar fell as low as $1.0664, down about half a cent from late local levels on Monday, after the Reserve Bank of Australia (RBA) said growth over 2011 is now unlikely to be as strong as earlier forecast. It last stood at $1.0677, finding some support at the 55-day moving average at $1.0670. Despite the decline, the Aussie managed to cling onto most of last week's rally from a trough around $1.0390. The Aussie also fell against the yen and the kiwi, reaching one-week lows at NZ$1.2880. Against the greenback, the New Zealand currency last stood at $0.8286.
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