By David Rogers SYDNEY--The Australian dollar slipped on Wednesday as jittery international equity markets offset exchange-rate strength following a Reserve Bank of Australia statement on Tuesday playing down further interest-rate cuts as inflation rises. At 0600 GMT the Australian dollar was at US$0.8893--down about 0.4% from Tuesday's New York close at US$0.8915. It slipped to US$0.8773 in Asia with investors still nervous about international equity markets ahead of Friday's U.S. nonfarm payrolls. The local currency hit a nine-day high of US$0.8943 on Tuesday after Australia's central bank said "the most prudent course is likely to be a period of stability in interest rates." The RBA also dropped its recent negative commentary on the exchange rate saying a 17% fall since last April, if sustained, will "assist in achieving balanced growth in the economy." "The London/New York recovery in global risk appetite was received warily in Asia--trimming the post-Reserve Bank of Australia statement Aussie-dollar gains," Westpac strategists said in a report. "This leaves the pair about 1.3 cents higher than the pre-RBA levels--consistent with a slight cooling in equity sentiment but with the RBA statement having provided a net gain." Traders will be watching domestic retail sales and international trade data on Thursday. The RBA's six-monthly statement on monetary policy on Friday will be in focus for more guidance on interest rates.

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