The Australian and New Zealand dollars held steady on Monday as investors digested the conclusion of US-Iran talks, which ended with signs of progress.
The diplomatic development has helped ease the geopolitical tensions that had weighed on risk sentiment earlier in the week, allowing commodity-linked currencies to stabilize.
6% decline last week that saw it hit a three-month low of $0.
The kiwi dollar traded little changed at $0.5734, recovering slightly from a 1.6% decline last week that saw it hit a three-month low of $0.5724.
Asian equity markets also opened the week on a positive note, reflecting the reduced immediate risk of escalation in the Middle East.
Despite the ceasefire reports, prediction markets have not shown significant movement regarding the likelihood of a comprehensive US-Iran nuclear deal this year.
Traders remain cautious, noting that further negotiations are required to solidify any long-term agreement, keeping a lid on sustained risk-on rallies.