The New Zealand dollar weakened against the other major currencies in the Asian session on Tuesday, after the Reserve Bank of New Zealand said inflation expectations have declined. A quarterly survey published by the Reserve Bank of New Zealand showed that two-year ahead inflation expectations in New Zealand eased to 1.80 percent in the first quarter from 2.06 percent in the fourth quarter.

Inflation expectations for one-year fell to 1.11 percent from 1.59 percent, the quarterly report revealed. The survey was conducted by the Nielsen Company.

Traders await the U.S. Federal Reserve Chair Janet Yellen's testimony before the House and Senate due later in the day. Yellen's remarks over the next two days are likely to be closely analyzed for hints as to when an interest rate hike may happen in the U.S.

Meanwhile, the New Zealand stock market also traded lower. The benchmark NZSE 50 index is currently down 31.39 points or 0.55 percent at 5,722.

Monday, the New Zealand dollar fell to 0.09 percent against the U.S. dollar, 0.006 percent against the euro and 0.009 percent against the Australian dollar.

In the Asian trading today, the NZ dollar fell to a near 2-week low of 0.7462 against the U.S. dollar and a 1-week low of 88.85 against the yen, from yesterday's closing quotes of 0.7516 and 89.34, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.72 against the greenback and 86.30 against the yen.

Against the euro, the kiwi slipped to a 5-day low of 1.5166 from yesterday's closing quote of 1.5060. The kiwi may test support near the 1.54 region.

Meanwhile, the Australian dollar also fell against its major rivals after Reserve Bank of New Zealand downgraded inflation expectations in its survey.

The Australian dollar fell to 5-day lows of 0.7761 against the U.S. dollar and 1.4600 against the euro, from yesterday's closing values of 0.7801 and 1.4525, respectively. If the aussie extends its downtrend, it is likely to find support around 0.76 against the greenback and 1.49 against the euro.

Against the yen and the Canadian dollar, the aussie slipped to 4-day lows of 92.42 and 0.9775 from yesterday's closing quotes of 92.68 and 0.9808, respectively. The aussie may test support near 89.15 against the yen and 0.96 against the loonie.

Looking ahead, the revised German GDP report is due at 2:00 am ET. Final Eurozone CPI data for January is set to be published at 5:00 am ET.

At the same time, the Bank of England Governer Mark Carney and several MPC members testify on inflation and the economic outlook before Parliament's Treasury Committee, in London.

In the New York session, U.S. S&P/Case-Shiller house price index for December and Markit's U.S. flash PMI reports, Conference Board's U.S. consumer confidence index and U.S. Richmond Fed manufacturing index - for February are due to be released.

At 9:00 am ET, European Central Bank President Mario Draghi will deliver a speech at an event to unveil the new 20 euro banknote in Frankfurt.

Subsequently, Yellen will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee in Washington DC at 10:00 am ET.

At 1:45 pm ET, Bank of Canada Governor Stephen Poloz will deliver a speech at the Western University, followed by news conference in London, Ontario.

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