The Australian and New Zealand dollars experienced gains against major currencies during the Asian session on Monday. This strengthening occurs amidst receding anxieties regarding a global trade war, following U.S. President Donald Trump's decision to postpone the implementation of new reciprocal tariff plans.
Speculation is increasing that the Reserve Bank of Australia (RBA) is poised to cut its interest rate on Tuesday. The RBA is anticipated to reduce the Official Cash Rate (OCR) by 25 basis points (bps) to 4.10%, marking the first rate reduction in four years. Similarly, the Reserve Bank of New Zealand (RBNZ) is expected to implement a third significant rate cut later this month.
Economic data from Business NZ revealed expansion in New Zealand's services sector for January, with a Performance of Services Index score of 50.4, up from a revised 49.1 in December.
In Asian trading, the Australian dollar reached a 5-day high of 1.6459 against the euro. Against the U.S. and Canadian dollars, the aussie climbed to a 2-month high of 0.6374 and a 2-week high of 0.9034, respectively. The aussie also edged up to 1.1103 against the NZ dollar.
The NZ dollar rose to nearly a 2-month high of 0.5750 against the U.S. dollar and advanced to a 6-day high of 1.8265 against the euro.