Australia, New Zealand dollars fall as US court blocks Trump tariffs

SYDNEY, May 29 (Reuters) - The Australian and New Zealand dollars fell on Thursday after a U.S. court blocked President Donald Trump's sweeping import tariffs from going into effect, sending the U.S dollar sharply higher.

The Aussie AUD=D3 slipped 0.2% to $0.6413, down for a fourth straight session and pulling away from a six-month top of $0.6537. Support is now around $0.6400 and $0.6358 while resistance is at $0.6444.

The kiwi dollar NZD=D3 fell 0.5% to $0.5925, giving back all of the gains on Wednesday from its central bank decision to signal it is nearing the end of the easing cycle. It has support at $0.5875.

The Aussie managed to claw back some ground on the kiwi, up 0.3% to NZ$1.0802 AUDNZD=R after a drop of 0.6% overnight to an one-month low.

A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

Investors reacted by embracing risk assets such as shares and buying the U.S. dollar which has been sold off heavily since early April.

"Rather than taking it as simple risk-on news that should benefit the likes of AUD and NZD, the U.S. dollar is the main beneficiary," said Sean Callow, a senior FX analyst at ITC Markets.

"For now the weight of money is being placed on the possibility that U.S. courts prevent the White House from self-imposed economic damage, brightening U.S. growth prospects and the USD."

Down Under, data on Thursday showed Australian business investment unexpectedly dipped in the March quarter while a drop in equipment spending looked to have dragged on growth in a blow to hopes of an economic rebound.

Swaps imply a rate cut from the Reserve Bank of Australia in July is a coin toss, while a total of three rate cuts have been priced in by early next year. In contrast, they only see one more rate cut from the Reserve Bank of New Zealand likely in August or October. 0#AUDIRPR

RBNZ officials appeared before parliament on Thursday, noting the tariff uncertainties that have made projections more difficult.

Two-year swap rates NZDSM3NB2Y= jumped 9 basis points on Thursday to 3.3%, the highest since early April as investors continued to price out the prospects of more policy easing in New Zealand.