By Swati Pandey and Charlotte Greenfield
SYDNEY/WELLINGTON, April 18 (Reuters) - The Australian dollar slipped on Tuesday as iron ore prices extended losses and as minutes of the central bank's April meeting reinforced views interest rates would stay low for longer.
The Australian dollar AUD=D4 fell 0.4 percent to $0.7556, but stayed above a 3-month trough of $0.7473 touched last week.
The Aussie has been on a slippery slope as investors flock to perceived safer assets such as the yen JPY= amid intensifying geopolitical tensions and ahead of the French presidential election in May.
Tumbling prices for iron ore DCIOcv1 , Australia's No.1 export earner, have added to the pressure. The most-traded iron ore on the Dalian Commodity Exchange DCIOcv1 has fallen to its lowest since early January. IRONORE/
Earlier, minutes of the Reserve Bank of Australia's (RBA) April meeting showed policymakers had to balance a subdued labour market against escalating household debt when leaving rates steady at 1.50 percent. RBA inserted a new line saying developments in the labour and housing markers "warranted careful monitoring" over coming months.
"It's a very clear synopsis of the conflicting issues facing the Bank - the weak labour market is restraining inflation while the strong housing market is boosting financial stability risks," said Paul Dales, an economist at Capital Economics.
The release of quarterly inflation figures due next week will help refine the outlook for interest rates.
Financial markets 0#YIB: imply a miniscule chance of a cut later in the year with some investors even toying with the idea of a hike in early 2018.
Across the Tasman Sea, the New Zealand dollar NZD=D4 treaded water around $0.7013, after hitting a two-week high of $0.7034 on Monday.
International news loomed over the outlook, in particular U.S. President Donald Trump's comments that the greenback should be lower. Investors were also nervous about trade friction between the world's No.1 economy and Japan.
"It has been somewhat of a rollercoaster ride over the past week or so, with risk sentiment, politics, and USD direction dominating," said Philip Borkin, senior economist at ANZ bank.
"But familiar ranges have held, and the NZD still finds itself after all that holding around the $0.70 mark."
Investors would pay close attention to a dairy auction held on Wednesday at which prices for milk powder, one of New Zealand's main export earners, were expected to rise.
New Zealand government bonds 0#NZTSY= eased, sending yields 4.5 basis points higher across the curve.
Australian government bond futures edged lower, with the three-year bond contract YTTc1 down 1 tick at 98.21. The 10-year contract YTCc1 slipped 2 ticks to 97.48. (Editing by Kim Coghill)