Forex - Kiwi falls after RBNZ inflation outlook eases, Greece eyed

Investing.com - The New Zealand dollar fell on Tuesday after the central bank revised down its outlook for inflation in the year ahead, while investors awaited further developments on Greece and its reform proposals for continued euro zone loans

NZD/USD traded at 0.7502, down 0.29%, reversing earlier gains after the Reserve Bank of New Zealand lowered expectations for inflation sharply in its latest quarterly outlook, suggesting prices may rise 1.11% in the year ahead from the first quarter, compared to a fourth quarter forecast of 1.59%. That is well below the midpoint aim of the 1% to 3% target band.

USD/JPY changed hands at 118.98, up 0.14%, while AUD/USD was down 0.08% at 0.7797.

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

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.02% to 94.68.

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.

Athens on Monday was scheduled to present a list of reforms to be approved by the country’s creditors, but delayed the process until Tuesday, Reuters reported.

Greece will present its economic reform plans to the euro zone on Tuesday, a government official said.

The official gave no reason for the delay but said euro zone finance ministers would consider Greece's plans, which include a crackdown on tax evasion and corruption, as scheduled on Tuesday afternoon.

In Brussels a euro zone official said the "content of the letter will not be a surprise" to the euro zone and therefore the Tuesday submission was not a major issue. Greece has said it was working closely with its euro zone partners in drawing up the list.

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.