SYDNEY/WELLINGTON: The Australian dollar eased and bond yields hit record lows on Tuesday after the country's central bank cut interest rates and pledged to buy longer-term debt with the aim of lowering borrowing costs across a struggling economy.

The Aussie dipped 0.2% to $0.7040 but remained above the 15-week low of $0.6990 touched on Monday. Resistance lies at $0.7076 with a major chart barrier up at $0.7157.

The New Zealand dollar held at $0.6634, up from a two-week low of $0.6590. It faces resistance at $0.6671.

Yields on Australian bonds out to five years all reached historic lows after the Reserve Bank of Australia (RBA) cut both the cash rate and its target for three-year yields by 15 basis points to 0.1%.

The central bank also extended bond purchases out to the five- to 10-year tenors, saying it planned to buy A$100 billion ($70.41 billion) of Federal and State debt over the next six months.-Reuters