Australian shares lower

Australian stocks declined 0.8 percent on Tuesday, weighed by worries over the impact of the high Aussie dollar on profits, but ending off their lows after the central bank kept official interest rates steady. The Reserve Bank held interest rates steady at 4.75 percent at its policy meeting, but said underlying inflation was likely to head higher from here, laying the groundwork for a further tightening in coming months.
"The RBA board's decision has been well received. There's a feeling that at least temporarily their foot has been lifted off our throat," said E.L. & C. Baillieu Stockbroking director Richard Morrow. Sharply rising interest rates over the past year have hammered the retail sector, and some retailers rose in relief after the news, with largest department store Myer adding 2.2 percent.
But the broader market remains dogged by investor fears that the surging dollar will prompt a series of profit warnings ahead of the next corporate reporting season in August. The banking sector weighed on the overall market, dragged lower by ANZ Banking Group.
ANZ reported a record first-half profit but warned of slow lending growth ahead and disappointed some with its dividend, sending its share price down 2.1 percent to A$23.80. The other major banks were down between 0.2 percent and 0.8 percent. The S&P/ASX 200 index slipped 40.7 points to 4,784.6, according to latest official figures, its lowest close in a month.
New Zealand's benchmark NZX 50 index fell 2.8 points to 3,495.1. Global miners BHP Billiton and Rio Tinto both fell, down 1.4 percent to A$45.50 and 0.7 percent to A$82.11 respectively. Shares in media group Fairfax Ltd, publisher of the Sydney Morning Herald, extended early losses to finish down 8 percent at A$1.205, after it said it expected full year EBITDA of about A$600 million.
Australian and New Zealand outdoor clothing and camping equipment retailer Kathmandu Holdings Ltd jumped 5.5 percent to A$1.93 on three times its average daily volume, after it reported strong third-quarter sales. The share price was just shy of its post-float high of A$1.955. Shares in property firm Stockland slid 2.1 percent to A$3.66 after it said it expects profit growth to slow in fiscal 2012 as home prices in its key market remain stable.