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$A falls as RBA signals rate cut

The Australian dollar is lower after the Reserve Bank signalled it is likely to cut interest rates again.

At 1200 AEDT on Tuesday, the local currency was trading at 76.23 US cents, down from 76.49 cents on Monday.

The Australian dollar fell more than a third of a US cent in late morning trade to hit a low of 76.11 US cents after the release of minutes from the RBA's March board meeting.

The minutes showed board members were very close to cutting the cash rate and would consider a cut at coming meetings, Commonwealth Bank currency strategist Joseph Capurso said.

"We didn't get that from their meeting statement in early March but we got that today," he said.

"They'll probably be a little bit closer to cutting the cash rate than people thought they were before the minutes came out, that's why the Aussie fell."

The RBA is more likely to cut the cash rate in May than April, after the release of inflation data for the March quarter, Mr Capurso said.

The bond market was mixed at 1200 AEDT.

The June 2015 10-year bond futures contract was trading at 97.525 (implying a yield of 2.475 per cent), up from 97.520 (2.480 per cent) on Monday.

The June 2015 three-year bond futures contract was at 98.180 (1.820 per cent), down from 98.200 (1.800 per cent).


One Australian dollar buys:

* 76.23 US cents, from 76.49 cents on Monday

* 92.60 Japanese yen, from 92.72 yen

* 72.17 euro cents, from 72.69 euro cents

* 103.43 New Zealand cents, from 103.75 NZ cents

* 51.43 British pence, from 51.80 pence

Government bond and bank bill yields:

* CGS 4.75 pct July 2017, 1.851% from 1.825% on Monday

* CGS 2.75 pct April 2024, 2.414% from 2.413%

(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)

Source: IRESS