NZDUSD trades off of Monday's worst levels.....>

KIWI: NZDUSD trades off of Monday's worst levels after the Bollinger band base

at 0.7193 provided support. NZDUSD last at 0.7245, AUDNZD at 1.0645.

- The latest GDT Dairy auction is due on Tuesday, with ASB expecting prices to

drift lower. The prior auction saw whole milk powder (WMP) prices fall by 0.8%.

ASB note that futures pricing suggests WMP prices will fall by over 2%. Fonterra

will issue its latest milk price forecast later on Tuesday (~19:30 GMT). It

currently stands at $6.40/kg & ASB expect this to rise to $.50/kg or above.

- The key risk event this week will of course be the RBNZ MonPol decision, with

watchers on the lookout for the new PTA, set to be issued over the 2 weeks.

- NZDUSD's first upside hurdle is the 55-DMA at 0.7278, followed in close

proximity by the 21-DMA at 0.7280. To the downside the Bollinger band base below

0.7193 is key, with the 200-DMA located at 0.7182. AUDNZD's sell-off from 1.0802

has resulted in fresh '18 lows. Focus is on 1.0464-1.0590 where the bear channel

base & rising TL off '15 lows are situated. Studies are well placed for losses

but the Bollinger base (1.0654) is the key concern for bears. Bulls now need a

close > 1.0700 to ease bearish pressure & target a correction back to 1.0802-63.