The Australian dollar skidded on Thursday after surprisingly weak business investment numbers led the market to narrow the odds on another cut in interest rates - albeit not until later in the year. The Aussie skidded around half a cent to a low of $0.8916, from $0.8962 in early trade, pulling further away from a peak of $0.9081 touched last week.
It was last at $0.8935 with strong support seen at $0.8910. Dealers cited stops below $0.8900. A break would target $0.8870, the 50 percent retracement of the January-February rally. The Aussie felt the heat across the board, falling around 0.4 percent against the yen, euro and pound.
It had already come under pressure when heightened tensions in Ukraine sent investors scurrying to the safety of the dollar and US Treasuries. The kiwi held near a session high of $0.8318, supported by figures showing New Zealand posted a bigger-than-expected trade surplus in January, thanks mainly to Chinese demand for its dairy exports. Indeed, the country's dairy giant Fonterra raised its milk price forecast to a record high on Thursday.
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