The Australian dollar got a helping hand on Wednesday while bonds took a beating as the country's top central banker said there were risks to cutting rates again, forcing markets to scale back wagers on an easing anytime soon.

The Aussie held at $0.6735 having bounced from a four-month trough of $0.6679 overnight and just barely avoided breaking to its lowest in a decade.

The New Zealand dollar lagged at $0.6482, after running into resistance at $0.6505, to remain not far from nine-week lows at $0.6450.

Bonds fared a lot worse as Reserve Bank of Australia (RBA) Governor Philip Lowe said he hoped they would not have to cut rates again and there was a reasonable prospect of a period of stability on policy.

The central bank held it first policy meeting of the year on Tuesday and kept rates at 0.75% following three cuts last year. Investors reacted quickly by pushing out the likely timing of a cut, with a move in April now priced at a 32% chance compared to 80% just a couple of days ago.

A quarter-point easing to 0.5% was now fully priced by August, out from June before Lowe began speaking. The market also sharply lengthened the odds on a further move to 0.25%. Yields on three-year bonds jumped 9 basis points to 0.71%, leaving behind an all-time low of 0.553%. Ten-year bond futures slid 9 ticks to 98.9750, taking implied yields back above 1%.