The Australian dollar inched higher on Tuesday after the country's central bank kept interest rates unchanged and showed no hint of considering another easing, underlining the outlook for steady policy. The Aussie was 0.3 percent firmer on the day at $0.7602, with dealers reporting a rush of algorithmic buying just before the policy decision.
The New Zealand dollar hit a near two-month low under major chart support at $0.7000 on Tuesday, before steadying somewhat at $0.7002.
The Kiwi had shed 0.75 percent overnight, outstripping the US dollar's modest 0.1 percent gain against a basket of world currencies.
New Zealand government bonds eased, sending yields 1.5 basis points higher at the long end of the curve.
Australian government bond futures dipped, with the three-year bond contract off 3 ticks at 97.920. The 10-year contract lost 1.5 ticks to 97.1500.
The Reserve Bank of Australia's (RBA) March policy meeting ended with rates unchanged at 1.5 percent as widely expected and the accompanying statement was generally upbeat.
Last month, RBA Governor Philip Lowe said the market was "reasonable" to price in unchanged rates for all of 2017, arguing further cuts would only stoke a debt-fuelled bubble in house prices.
The central bank has not shown any inclination as yet to tighten given underlying inflation and wages growth are running at record lows and there is plenty of slack in the labour market.
The net result is that interbank futures show almost no chance of an easing out to September and then imply a growing chance of a hike into 2018.