NZD/USD extends gains to new two-week high post-GDT

The buyers took control following the latest Global Dairy Trade Auction from New Zealand and pushed the NZD/USD to a new two-week high at 0.7087. At the moment, the pair is just a couple of pips below that level recording a daily gain of 0.45%.

RBNZ

Prices at the latest Global Dairy Trade (GDT) auction, rose 1.7% following a 6.3% fall from two weeks ago, giving extra legs to the NZD. The next important event for the NZD will be the RBNZ policy rate decision on Wednesday (20:00 GMT). Although the bank is expected to keep the policy rate unchanged, in the face of the cooling housing market and below the target (2%) inflation rate, it might have a cautious tone suggesting no near term OCR increases. 

RBNZ to hold the OCR at 1.75% and maintain a neutral outlook for the policy rate - Westpac

U.S. 10-year bond yield dropped to 2.448% (-1%) during the early hours of the NA session, pushing the US dollar index to 99.50. As of writing, DXY is down 0.58% at 99.60.  Kansas Fed President Esther George and Cleveland Fed's Loretta Mester will be giving speeches later in the session and investors will be looking for fresh clues on the future of the monetary policy.

NZD to follow US yields, RBNZ to stay out of the way - AmpGFX

Technical outlook

The 50% Fibo retracement of the Jan/Feb rise at 0.7120 is the first hurdle for the NZD/USD followed by 0.7160 (200-DMA) and 0.7245 (Feb. 23 low). On the downside, technical supports could be found at 0.7030 (daily low), 0.7000 (psychological level)  and finally 0.6925 (Mar. 15 low).