NZD/USD inches higher to daily highs after Yellen

The NZD/USD pair edged higher towards 0.6970 in the US afternoon as the US Dollar Index remained below 101 following the remarks from Chairwoman Janet Yellen. At the moment, the pair is up 0.05% at 0.6965.

Despite that late rise, the pair stayed in a 50 pip range on Monday unable to make a substantial move in either direction. Electronic Card Retails Sales data for March that will be released by the Statics New Zealand could be the next catalyst for the pair as it will provide a good insight into consumer spending and the retail sector.

Yellen in her speech at the Universtiy of Michigan nearly repeated the message from the recent Fed statements regarding the economy and the monetary policy by saying that they were close to reaching their objectives and it would be appropriate to raise the rates gradually if the economy continues to perform well.

• Fed's Yellen: Economy is pretty healthy
• Fed's Yellen: Labor market now at normal state

Technical outlook

0.7000 (psychological level) aligns as the first hurdle for the pair followed by 0.7080 (100-DMA) and 0.7140 (200-DMA). To the downside, a break below 0.6920 (daily low) could aim for 0.6890 (Mar. 9 low) and 0.6800 (psychological level)

• NZD/USD: 0.6900 unlikely to come under serious threat, for now - UOB
• NZD/USD: Negative bias for the week ahead - Westpac