Australia, NZ dlrs hit two-week highs on Trump tariff delay

SYDNEY, Jan 21 (Reuters) - The Australian and New Zealand dollars were standing near two-week highs on Tuesday after U.S. President Donald Trump stopped short of imposing new tariffs on his first day in office, triggering a broad correction in the greenback.

Local bonds also gained, tracking the rise in Treasuries. Australia's three-year government bond futures YTTc1 rose 3 ticks to 96.11, while ten-year futures also gained 4 ticks to 95.53.

The Aussie AUD=D3 edged up 0.1% to $0.6282, having rallied 1.4% overnight to a two-week top of $0.6287. The bounce likely saved it from testing new five-year low in the near-term, with resistance now at $0.6302.

The kiwi dollar NZD=D3 had better luck and hit a fresh two-week high of $0.5683, after gaining 1.6% overnight. Resistance lies at $0.5692, with support at $0.5539.

In the broader market, the U.S. dollar was nursing heavy losses after Trump used his inauguration speech to announce emergencies on immigration and energy. There was a brief mention of tariffs and, so far, no details on how or when they might be rolled out. FRX/

"Trump's mercurial nature means that it could all unravel in the time it takes to push send on a social media post," said Kyle Rodda, senior analyst at Capital.com.

"However, reports of a cooperative tone to conversations with China and a more deliberate approach to the application of tariffs have the markets hoping that the worst parts of the Trump-trade, tariffs, won’t materialise."

The Chinese yuan - which the two antipodeans have closely tracked due to their close trade relations with China - had a huge relief. The dollar dived 1.1% overnight to 7.2611 yuan CNH= in offshore trade.

Local data on Tuesday showed New Zealand electronic retail card spending rose 2.0% in December, the largest monthly rise since early 2022.

New Zealand also has consumer prices on tap on Wednesday where analysts look for a mild 0.4% rise in the fourth quarter. Annual inflation is seen slowing to 2.1%, from 2.2%, the lowest reading since 2021.

The Reserve Bank of New Zealand next meets on Feb. 19 and markets imply around an 80% chance it will cut its 4.25% cash rate to 3.75%. Rates are seen falling further to between 3.0% and 3.25% by the end of the year. 0#NZDIRPR

The Australian data diary is bare this week. The closely watched quarterly consumer price report is due on Jan. 29 and analysts are hopeful the all-important trimmed mean will rise just 0.6% in the fourth quarter, the smallest increase since mid-2021.

Markets imply around a 63% chance the RBA will cut its 4.35% cash rate by a quarter point at its Feb. 18 meeting. 0#AUDIRPR

(Reporting by Stella Qiu; Editing by Stephen Coates)

((yifan.qiu@thomsonreuters.com))