You are doing exactly what I would be doing. They are hearing and smelling one another now and definitely getting used to each other. I plan to keep dogs apart for several weeks and always end up allowing them to interact much sooner just because they get relaxed and I relax. At first new dog is kept penned most of the time then dogs are switched so old dog is penned for a bit while new dog gets a bit more freedom in the house to practice good house manners. Dogs fed out of sight for a long time separated if there are chews out. My current two 'trade' toys which is actually a bit of resource guarding and it wouldn't be a bad idea to keep all toys up as well.
Sassy was very dog reactive, before I understood how to treat it so she never really got better. She lived with other dogs just fine. Her reactivity was because she didn't know how the other dog was going to act towards her. If she had plenty of time to learn about the other dog she calmed down just fine. So taking obedience class where she was close to the same dogs week after week helped a great deal but she never learned to be calm around random dogs passed during walks.
Sassy was very dog reactive, before I understood how to treat it so she never really got better. She lived with other dogs just fine. Her reactivity was because she didn't know how the other dog was going to act towards her. If she had plenty of time to learn about the other dog she calmed down just fine. So taking obedience class where she was close to the same dogs week after week helped a great deal but she never learned to be calm around random dogs passed during walks.