Dollar slides as housing recovery loses puff SIGNS that a nascent recovery in the housing sector stumbled in March pushed the Australian dollar to its lowest since mid-April. The number of house-building permits fell 5.5 per cent in March, the most since July, curbing optimism that the sector was gaining strength after years of malaise. The dollar was at $US1.0238 late today after trading as low as $US1.0223. It was $US1.0356 late yesterday We have been expecting another rate cut by the Reserve Bank of Australia, but have been agnostic as to whether this could be May or June. We now think the balance of risks has shifted to the Bank moving sooner," said Paul Brennan, chief economist at Citigroup. The RBA's policy-setting board meets on Tuesday. Late today, financial markets had priced in a 70 per cent chance of a cut in its policy interest rate. The RBA has lowered the rate six times since late 2011 to spur areas of the economy such as housing construction and consumer spending ahead of an expected peak in mining investment later this year. Economists warn that if the non-mining economy fails to fully revive, there could be a period of weak economic growth in coming years. At 3 per cent, the rate is equal to the low of the aftermath of the global financial crisis in 2008. The RBA last lowered the rate in December, but has said it sees scope to lower it again as inflation appears tame. Elsewhere, a closely watched observer of the economy said the dollar's relative strength won't last much longer. Shane Oliver, the head of investment strategy at AMP Capital, said "the best is likely behind for the Australian dollar." It has traded above parity with the US dollar for more than two years. The commodity price boom is starting to fade in response to a moderation in Chinese growth as commodity supply starts to increase. Upward impetus on the Australian dollar stemming from quantitative easing in the US has been blunted by RBA rate cuts, and by the likelihood of further cuts, Mr Oliver said.