* RBA cut rates by 25bp to 3.25 pct, lowest in 3 yrs
* Market pricing in 3 pct by Christmas, bond futures rally
* Aussie hit hard vs euro, kiwi & GBP
By Mantik Kusjanto and Cecile Lefort
SYDNEY/WELLINGTON, Oct 2 (Reuters) - The Australian dollar slipped to one-month lows on Tuesday after the Reserve Bank of Australia (RBA) cut rates to a three-year trough of 3.25 percent and left the door ajar for more easing.
The Australian dollar skidded 0.6 percent to $1.0295, its lowest since Sept 7, as the market had not been fully priced for a move. Many economists had favoured November as a more likely window for a cut.
The RBA cited a darker global background, falling export prices and a high currency as the main factors weighing on the nation's economic outlook.
Interbank futures are showing a 60 percent chance of another cut in November. Overnight indexed swaps , which show where the market thinks the cash rate will be over time, have 2.70 percent inked in on a 12-month horizon.
Australian government bond futures rallied to two-month highs with the three-year contract jumping to a peak of 97.700. It easily pierced 97.717, the 61.8 percent of the June-August decline which opens the way to a possible test of 98.100, the 30-year peak hit in June.
Likewise, the 10-year contract rose as high as 97.130, with little in the way before 97.340, the July peak, and 97.360, the all-time high.
Yields on Australian 10-year cash bonds fell under 3 percent, making it cheaper for the government to borrow for a decade than for banks to borrow overnight.
The RBA cut sent the Aussie reeling across the board with the local dollar skidding the most against the euro, kiwi and sterling.
For David Scutt, a trader at Arab Bank Australia, the Aussie's losses were limited by Australia's triple-A ratings and still relatively tight monetary policy compared with the rest of the Western world.
"Central banks and investment funds are all long the Aussie dollar and have a vested interest in keeping it at elevated levels," said Scutt.
"The Aussie won't fall much more beyond $1.0300," he added.
Immediate support for the Aussie was found at the cloud base of $1.0292, ahead of $1.0237 with resistance at $1.0375.
NEW ZEALAND DOLLAR JUMPS TO ONE-YEAR HIGHS VS AUSSIE
The Aussie skidded to its weakest in a year against the kiwi at NZ$1.2414 , having shaved almost five percent since a seven-month high in late July.
"We expect relative commodity prices and interest rates to continue to favour the kiwi over the Aussie over the coming 3-6 months," said Bank of New Zealand strategist Mike Jones.
The New Zealand dollar edged up to $0.8290, from $0.8270 in early trade, not far from a six-month high of $0.8357 on Friday.
The kiwi has gained around 11 percent over the past four months and is showing little sign of running out of puff.
In the near term, the kiwi was seen supported around $0.8250 and below that $0.8230, with first hurdle expected at $0.8310 and then $0.8325.
The kiwi found further support after ANZ Bank's commodity price index posted its biggest gain in 18 months in September, lifted by strong dairy prices. That came as no surprise after recent rebounds at dairy price auctions.
New Zealand government bonds were firmer, with yields three basis points lower along the curve.
((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))
Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX