Australia shares nudge 4 1/2-month highs before slipping on oil price

* Market hits 20-week peak before falling

* Oil price fall sends sector down

* Growing chorus expectes rate cut (Adds analysis, quotes, stocks on the move)

SYDNEY/WELLINGTON, Jan 29 (Reuters) - Australian shares touched a 20-week intraday high before paring gains on Thursday as a rout in energy stocks caused by plummeting oil prices overshadowed expectations of an imminent interest rate cut.

After oil prices plumbed six-year lows overnight, large energy companies warned of spending and earnings cuts, sending the stocks lower.

But banks, retailers and other stocks said to benefit from lower interest rates gained as the oil price slide, coupled with lacklustre domestic economic data in recent days, added to expectations that the Reserve bank of Australia will cut rates at a Feb. 3 meeting.

"The energy sector is getting smashed, as expected," said Evan Lucas, market strategist at trader IG Markets.

However, he added that "we are alive and kicking for a rate cut next Tuesday", citing figures which showed December quarter exports were flat despite higher prices.

The S&P/ASX 200 index rose as much as a third of a percentage point to its highest since Sept. 11, before trimming gains to be up 0.1 percent or 6.5 points at 5559.3 by 0225 GMT.

Among energy producers, Woodside Petroleum (Other OTC: WOPEF - news) fell 2.21 percent and Santos dropped 4.3 percent. Oil Search dipped 2.8 percent after announcing plans to cut spending and warning of an impairment charge of up to $200 million for 2014.

Beach Energy fell 4 percent after saying it will cut spending by 20 percent because of the oil price slide.

Non-oil resources fared better. Iron ore producer Fortescue Metals Group gained 5 percent after saying cost-cutting had allowed it to continue operating profitably. BHP Billiton (NYSE: BBL - news) and Rio Tinto (Xetra: 855018 - news) each fell half a percentage point.

Among banks, which are expected to write more home loans if interest rates fall, Commonwealth bank of Australia (Other OTC: CBAUF - news) and Australia and New Zealand Banking Group each rose half a percentage point. National Australia Bank rose 0.3 percent.

Furniture and electronics retailer Harvey Norman rose 1.7 percent and rival JB Hi Fi rose 1.2 percent amid expectations they will increase sales if borrowing costs fall.

New Zealand shares were marginally higher but trimmed their gains after hitting a lifetime high for the fifth consecutive session.

The benchmark NZX-50 index was up 3.5 points at 5,798.31, after hitting a record 5,820.14 after the Reserve Bank of NZ said it would hold rates for some time and might cut them.

The biggest listed company Fletcher Building (NZSE: FBU.NZ - news) bounded 1.4 percent higher to NZ$8.44 as the RBNZ singled out the strong construction market.

Contact Energy (NZSE: CEN.NZ - news) , the number three stock, rose 1 percent to a six-year high of NZ$7.22.

(Reporting by Byron Kaye and Gyles Beckford)