SYDNEY/WELLINGTON (Reuters) - The Australian and New Zealand dollars stayed on the defensive on Monday as rumblings about a world trade war curbed risk appetites and overshadowed the upbeat part of domestic economic data.
The Aussie dollar <AUD=D4> was off 0.18 percent at $0.7748 and uncomfortably near to recent two-month lows at $0.7713. The kiwi <NZD=D4> eased 0.35 percent to $0.7218 and closer to support around $0.7184.
Both countries have open commodity exporting economies that benefit substantially from free trade, making them vulnerable should U.S. President Donald Trump's threat of tariffs lead to a round of tit-for-tat reprisals.
"This week expect trade protectionism rhetoric to hold markets attention and for any retaliation to be poorly received for trade-dependent currencies," said Jeremy Couchman, senior economist at Kiwibank.
Lost in the noise was Australian data showing strength in vehicle sales, job ads and approvals to build new homes that augured well for continued economic growth this year.
Figures due Wednesday are forecast to show Australia's A$1.8 trillion gross domestic product (GDP) expanded by around 0.6 percent in the December quarter.
That would see annual growth slow to 2.5 percent, from 2.8 percent, but it would still mark more than 26 years without a technical recession.
The Reserve Bank of Australia (RBA) holds its March meeting on Tuesday and is thought certain to keep rates at 1.5 percent and signal it is no rush to hike anytime soon.
For the kiwi, the next test will be a global auction for dairy, the country's main goods export, which could weigh if prices slip as analysts expect.
New Zealand government bonds <0#NZTSY=> eased, sending yields 4.5 basis points higher.
Australian government bond futures recouped early losses as risk aversion slugged stocks across Asia. The three-year bond contract <YTTc1> edged up half a tick to 97.935, while the 10-year contract <YTCc1> was off 1 tick at 97.2700.
(Editing by Richard Borsuk)
