* Solid rally in iron ore and oil helps lift AUD & CAD
* NZD lags on risk of dovish RBNZ on Thursday
* ECB considered almost certain to ease, but by how much?
By Ian Chua
SYDNEY, March 8 (Reuters) - The Australian and Canadian dollars stood at multi-month highs early on Tuesday in the wake of a rally in commodity prices, contrasting with a subdued performance in the greenback, euro and yen.
The Aussie came within a whisker of 75 U.S cents AUD=D4 , reaching a high not see since July. Its Canadian peer climbed as far as C$1.3262 per USD CAD=D4 , scaling a peak last seen in November. The Aussie was last at $0.7465, while the loonie was at C$1.3292.
Investors warmed to the commodity currencies after Brent crude LCOc1 jumped more than 5 percent to above $40 a barrel for the first time this year on growing hopes of a production freeze in an over supplied market. that Chinese steel mills are planning a short-term output boost saw iron ore, Australia's single most valuable export, surge nearly 20 percent to the highest in more than eight months. will now depend on Chinese trade numbers due later in the day. Any major disappointment that renews worries about slowing growth and demand in the world's second biggest economy could snuff out the commodities rally. ECONCN
In contrast, the dollar, euro and yen shuffled sideways as investors wait for the outcome of Thursday's policy review by the European Central Bank (ECB).
The ECB is widely expected to ease, but there is a lot of uncertainty about how far it would go. Euro bears are cautious about positioning for bold action, having been badly burnt before when the ECB disappointed by choosing more modest easing measures.
"We think the central bank will once again struggle to beat high expectations, with the euro not likely to suffer significantly after the announcement," analysts at BNP Paribas (PA:BNPP) wrote in a note to clients.
The euro remained near $1.1000 EUR= , holding steady after a recent recovery from a one-month low of $1.08255.
Against the yen, the common currency was a touch softer just under 125.00 yen EURJPY=R . The dollar stepped back to 113.35 yen JPY= , after finding the going tough above 114.00 yen.
The Bank of Canada and Reserve Bank of New Zealand also hold policy meetings this week, but no action is expected.
Markets are giving only a small chance of a rate cut by the RBNZ. Many analysts instead expect a dovish statement to accompany a no-change decision. has kept the kiwi from joining the rally in commodity currencies. It was last at $0.6791 NZD=D4 , capped below a two-month high of $0.6820 set on Friday. (Editing by Richard Pullin)