Dollar down from one-week high Yesterday evening, the Australian dollar peaked at 94.37 US cents, its highest level since September 23. (AAP Image/Julian Smith) Source: Supplied THE Australian dollar has slipped from a one-week high reached after the central bank appeared to play down the need for more interest rate cuts. At 7am AEST today, the local unit was trading at 94.02 US cents, down from 94.20 cents yesterday. The Reserve Bank of Australia governor Glenn Stevens yesterday said cash rate cuts since late-2011 had supported interest-sensitive parts of the economy. In overnight trade, most major currencies gained against a weaker US dollar due to the US government shutdown after Congress failed to pass the budget by the end of the American financial year at midnight on September 30 (2pm Oct. 1 AEST). Most parts of the US government have now closed because they do not have the money to pay staff. BK Asset Management managing director Kathy Lien said the Australian dollar performed a bit better than most currencies because of the RBA comments, but lost some ground late in the session. "There hasn't been a dramatic reaction in currencies and equities even rallied because the shutdown is expected to be brief and do little damage to the US economy," she said from New York. It is estimated that a two-day shutdown will shave 0.1 per cent off fourth quarter gross domestic product (GDP) and a week-long shutdown would reduce growth by 0.3 per cent. Of course, the longer the shutdown, the greater the pain. In Australia on Wednesday morning, official building approvals figures for August will be released, as well as trade data for the same month.