Australia's central bank cut interest rates on Tuesday for a third time this year and signaled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum.

The Reserve Bank has followed through on its widely anticipated interest rate cut, announcing a 0.25 percentage point reduction to 3.6 per cent.

A weak July jobs report could prompt the Federal Reserve to make its first interest rate cut of the year, as more officials raise concerns about a weakening economy.