Australia's dollar weakened to $1.0621 as of 3:18 p.m. in Sydney from $1.0671 yesterday, after touching $1.0612, the lowest since Feb. 23. The Aussie dropped 0.7 percent to 86.45 yen from yesterday, when it fell 0.9 percent.

New Zealand's currency touched 81.38 U.S. cents, the weakest since Jan. 25, before trading at 81.47, 0.7 percent below yesterday's close. It declined 1 percent to 66.31 yen. It earlier touched 66.26 yen, the least since Feb. 20.

RBA Governor Glenn Stevens and his board left the overnight cash-rate target at 4.25 percent, the central bank said in a statement in Sydney today.

While the RBA said current settings are appropriate for the moment, there is scope for easier policy if demand weakens materially, according to the statement.

Traders expect the RBA to reduce borrowing costs by 40 basis points within a year, according a Credit Suisse AG index based on swaps. That compares with 104 basis points in cuts predicted on Feb. 1.

Australia's government bonds advanced, with yields on 10- year debt dropping four basis points, or 0.04 percentage point, to 3.99 percent.

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HCM Custom Chart for the Australian Dollar

New Zealand's budget deficit was NZ$473 million ($387 million) wider than forecast in the seven months through January after earthquake insurance liabilities exceeded expectations, a report today showed. The government's operating deficit before gains and losses on investments was NZ$4.314 billion in the period, compared with the NZ$3.841 billion gap forecast in the pre-election fiscal update published in October, the Treasury Department said in a report released in Wellington.

Prime Minister John Key is forecasting the government will eliminate the shortfall by 2015 as it cuts spending and reduces debt by selling as much as 49 percent of four state-owned energy companies. Weaker world growth may curb revenue, reducing the 2015 surplus to a third the size it predicted in October, the government said last month.

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HCM Custom Chart for the New Zealand Dollar

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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