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Forex - Kiwi stronger before RBNZ inflation views, Aussie flat

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Investing.com -

Investing.com - The New Zealand dollar gained in early Asia on Tuesday ahead of inflation views from the central bank key to policy settings.

NZD/USD traded at 0.7529, up 0.06%. USD/JPY changed hands at 118.85, up 0.03%, while AUD/USD was flat at 0.7804.

Financial markets in China remain closed until Wednesday. In Japan, producer prices rose 3.4%, below expectations of a 3.6% gain.

A bit later in the day, the Reserve Bank of New Zealand reports its first quarter inflation expectations at 1500 local time (2100 GMT).

The outlook could form a key basis for its revised inflation projections for the March Monetary Policy Statement. The previous survey showed two-year mean inflation expectation at 2.06% and it's likely the new number could be well below 2%.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.03% to 94.63.

Overnight, the dollar trimmed gains against the other major currencies on Monday, after the release of disappointing U.S. home sales data, although concerns over whether Greece will announce the necessary reforms for its bailout extension continued to support safe-haven demand.

In a report, the National Association of Realtors said that existing home sales decreased 4.9% to 4.82 million units last month from 5.07 million in December. Analysts had expected existing home sales to fall 0.8% to 4.97 million units in January.

The single currency came under renewed selling pressure as concerns over the conditions attached to the bailout extension kept investors cautious. Athens was to submit a list of reforms to be approved by the country's creditors in order to secure the extension later Monday.

Earlier Monday, the minutes of the Bank of Japan's January meeting showed that three policymakers expressed doubts the central bank can meet its inflation target because of a slowdown in underlying prices and falling oil prices .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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