The New Zealand dollar strengthened against the other major currencies in the Asian session on Tuesday, after the Reserve Bank of New Zealand showed that its 2 year inflation expectations have inched up slightly in the second quarter of 2015.

Data from the Reserve Bank of New Zealand showed that twelve-months ahead inflation expectations in New Zealand inched up slightly in the second quarter. Expectations for the next one-year rose to 1.32 percent from 1.11 percent in the first quarter, the report revealed. The survey was conducted by the Nielsen Company.

Inflation expectations in the next 24 months also climbed to 1.85 percent from 1.80 percent in the previous three months survey.

The currency fell slightly earlier after the release of the nation's producer price output report.

Data from Statistics New Zealand showed that producer price output in New Zealand fell 0.9 percent on quarter in the first quarter of 2015, missing forecasts for a decline of 0.8 percent after easing 0.1 percent in the previous three months. Producer price input dropped 1.1 percent on quarter after losing 0.4 percent in the three months prior.

On a yearly basis, PPI output shed 2.5 percent after losing 0.8 percent in the fourth quarter, while PPI inputs tumbled 4.0 percent after falling 1.9 percent in the previous three months.

Monday, the NZ dollar fell against its major rivals, amid expectations that the Reserve Bank of New Zealand is likely to cut its official cash rate as part of the government measures to curb Auckland's rising housing market prices. The NZ dollar fell 1.05 percent against the U.S. dollar, 0.60 percent against the Yen, 0.42 percent against the Euro and 0.37 percent against the Australian dollar on Monday.

In the Asian trading today, the NZ dollar rose to a 4-day high of 1.5207 against the euro, from an early low of 1.5366. On the upside, 1.47 is seen as the next resistance level for the kiwi.

Moving away from early 6-day lows of 0.7358 against the U.S. dollar and 88.28 against the yen, the kiwi advanced to 0.7426 and 89.08, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.77 against the greenback and 90.00 against the yen.

Against the Australian dollar, the kiwi climbed to a 4-day high of 1.0754 from an early 6-day low of 1.0849. The kiwi may test support near the 1.05 region. Data from the Conference Board showed that Australia's leading economic index was down 0.1 percent in March, following the 0.5 percent increase in February.

The coincident index added 0.5 percent after rising 0.4 percent in the previous month.

Looking ahead, U.K. consumer, producer and retail price indices for April, German ZEW economic sentiment index for May and Eurozone final CPI for April and trade balance for March are due to be released in the European session.

At 3:00 am ET, European Central Bank Governing Council member Christian Noyer is expected to speak at a Euromoney conference on inflation-linked bonds in Paris.

In the New York session, U.S. building permits and housing starts for April are set to be published.

Bretton Woods Committee 2015 Annual Meeting will be conducted in Washington D.C. at 8:30 am ET, in which World Bank Managing Director Sri Mulyani Indrawati, U.S. Treasury Secretary Jacob Lew and International Monetary Fund head Christine Lagarde are deliver speeches.

At 11:30 am ET, Bank of Canada Governor Stephen Poloz will address the Greater Charlottetown Area Chamber of Commerce in Prince Edward Island, followed by a news conference.

Half-an-hour later, Swiss National Bank director Jean-Pierre Danthine will deliver a speech titled "Swiss Monetary Policy Facts and Fictions", in Geneva.

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