RBA's surprise move hits Australian, NZ dollars

London

THE Australian and New Zealand dollars weakened further in early trade in Europe on Tuesday after a sell-off following the Reserve Bank of Australia's surprise decision to cut its main interest rate.

The outlook for both Antipodean currencies has worsened in recent weeks with concerns about growth generating expectations of generally looser monetary policy, but the RBA's decision to cut interest rate by 25 basis points still came as a shock to many.