The Australian and New Zealand dollars experienced a decline from five-month highs as their recent rally faced resistance. The Australian dollar dipped to $0.6828, up 3.4% for the month and 7.5% higher since November. The kiwi dollar eased to $0.6332, up 2.9% for the month. Bonds also saw profit-taking after a strong run in the past two months. Three-year bond futures dipped 3 ticks to 96.440, with yields on 10-year bonds falling to 3.962% from November's high. The Reserve Bank of Australia (RBA) is expected to have little chance of tightening rates, with most analysts assuming it will consider a quarter-point cut in June. The Reserve Bank of New Zealand (RBNZ) is expected to make a decision on a possible rate cut a full year earlier than its own projection.

AUD and NZD Experience Decline