FOREX-Australian dollar sags on easing rates outlook, pound hobbled by Brexit anxiety

* Aussie skids after dovish RBA minutes
* Pound under pressure as Johnson fans no-deal Brexit
worries
* China-U.S. friction undermines Aussie
* Fed's policy review next key focus
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates prices, adds analyst quote)
By Hideyuki Sano and Stanley White
TOKYO, June 18 (Reuters) - The Australian dollar on Tuesday
eased to its lowest levels since early January after the
nation's central bank flagged a further rate cut, while the
British pound was hobbled by rising worries of a no-deal Brexit
With markets focused on U.S. Federal Reserve and Bank of
Japan meetings later this week, traders latched on to minutes of
the Reserve Bank of Australia's (RBA) June meeting which showed
policymakers were prepared to cut rates once more to revive
wages growth and inflation.
"The market is already pricing in two rate cuts (in
Australia), and there are some speculative moves to push the
Aussie lower," said Yukio Ishizuki, foreign exchange strategist
at Daiwa Securities.
The RBA minutes sent the Aussie slumping to $0.6833, its
lowest since the flash crash of early January. It was last
fetching $0.6837.
Markets are pricing in about 50% chance of another rate cut
next month by the RBA, which delivered its first easing in
almost three years just two weeks ago. RBAWATCH .
The pound was under pressure after former foreign minister
Boris Johnson got a boost on Monday in his campaign to become
prime minister as one of his former rivals and EU supporter Matt
Hancock backed him. That rattled markets as Johnson, the face of the official
campaign to leave the European Union in the 2016 referendum, has
promised to lead Britain out of the EU with or without a deal.
The pound, which tumbled to a 5-1/2-month low of $1.2532 on
Monday, last traded at $1.2530 GBP=D4 . It also fell to its
weakest level since January against the euro, which climbed to
89.74 pence EURGBP=D4 , compared to a two-year low of 84.56
touched just over a month ago.
The pound could be in for a rough ride in coming days, with
a raft of potentially market-moving events ahead, including
consumer inflation and retail sales data, due on Wednesday and
Thursday respectively, and the Bank of England's policy
announcement on Thursday.
The dollar eased slightly to 108.23 yen JPY= on Tuesday as
a decline in Japanese stocks triggered about of risk aversion.
"The yen may have a little more room to rise if U.S. stocks
take a hit and trigger a bout of risk aversion," Daiwa
Securities' Ishizuki said.
The dollar index measuring its value against six major
currencies also declined slightly to 97.446 .DXY , undermined
by the New York Fed's business index fell this month by a record
to reach its weakest level in more than 2-1/2 years.
The Fed's two-day policy meeting starting later on Tuesday
is the next major focus after markets have priced in more than
two 25 basis-point rate cuts by year-end.
That marks a sharp contrast to the Fed's official forecast
in March, which showed policymakers deemed the next move would
be a hike.
"As markets are now pricing in rate cuts in the second half
of this year, the question is how the Fed will respond to such
an outlook," said Shinichiro Kadota, senior strategist at
Barclays.
The euro was little changed in Asia, trading at $1.1231
EUR= .

(Editing by Shri Navaratnam)