Across the Tasman, the kiwi dollar dipped to $0.6725, having already eased for four sessions in a row. Support comes in at $0.6714, with stiff resistance up at $0.6785. The currency has been pressured as speculators wager that data on consumer prices due on Wednesday will be weak enough to narrow the odds on a policy easing from the Reserve Bank of New Zealand.
New Zealand government bonds were little changed on Tuesday, with two-year yields of 1.71 percent still below the 1.75 percent cash rate. Australian government bond futures were a shade lower, with the three-year bond contract off 1.5 ticks at 98.195. The 10-year contract eased half a tick to 97.6850.
China reported growth had slowed last quarter and the IMF trimmed its forecasts for the global economy for this year and next. In its second downgrade in three months, the IMF also cited a bigger-than-expected slowdown in China's economy and a possible "No Deal" Brexit as risks to its forecasts. Gareth Aird, a senior economist at Commonwealth Bank of Australia, argued that further stimulus by China would support prices for Australia's main commodity exports.
Iron ore, for instance, has hit its highest in almost 11 months on expectations of solid demand from Chinese steel mills. "Our optimism largely stems from our expectation that Chinese policymakers will respond to the slowdown with targeted policy measures to support lagging sectors," Aird said in a note.