Prompting losses to the Aussie was the Reserve Bank of Australia noting it might be inclined to implement monetary easing. The currency of New Zealand held its gains against the greenback after a report noted China saw an expansion of non-manufacturing industries.
"If the signal from the budget is deep fiscal cuts, I guess there is no option for the RBA but to ease monetary policy to accommodate tighter fiscal conditions," Asia-Pacific interest-rate strategy head Christian Carrillo in Tokyo with Societe Generale told Bloomberg prior to the central bank's commentary about its April meeting.
The statement released by Glenn Stevens, governor of the Reserve Bank of Australia, noted the RBA is inclined to consider information before deciding whether it will implement a policy of monetary easing.
Policy makers opted at the April meeting to leave the key cash rate intact at 4.25 percent, according to MarketWatch. But the institution did demonstrate an inclination to slash rates as soon as next month.