The New Zealand dollar slipped against its major opponents in the Asian session on Tuesday, after a data showed that the nation's trade deficit widened than forecast in January.

Data from Statistics New Zealand showed that New Zealand had a merchandise trade deficit of NZ$566 million in January.

That missed expectations for a flat reading following the NZ$596 million shortfall in December.

Exports were up 9.5 percent on year, while imports rose 17 percent.

Investors look forward to Congressional testimony by the new Federal Reserve Chairman Jerome Powell later in the day.

Powell will testify before the U.S. House of Representatives' Financial Services Committee, which will be keenly watched for further insight on inflation and interest rates.

The kiwi declined to a 4-day low of 0.7274 against the greenback, compared to Monday's closing value of 0.7302. The kiwi is likely to find support around the 0.70 level.

The kiwi that ended Monday's trading at 78.05 against the yen dropped to 77.79. If the kiwi drops further, 1.25 is possibly seen as its next support level.

The kiwi slipped to 1.6944 against the euro, its weakest since February 14. The next possible support for the kiwi is seen around the 1.71 mark.

The NZ currency weakened to near a 2-week low of 1.0786 against the aussie and held steady thereafter. The pair closed Monday's deals at 1.0751.

Weekly survey compiled by the ANZ bank and Roy Morgan Research showed that Australia's consumer confidence improved during the week ended February 25.

The consumer confidence index rose 2.3 percent to 117.9 from 115.3 in the preceding week.

Looking ahead, Eurozone M3 money supply for January and economic confidence index for February are set for release in the European session.

At 5:00 am ET, Deutsche Bundesbank President Jens Weidmann speaks about the Bundesbank's Annual Report in Frankfurt.

German preliminary CPI for February is scheduled for release at 8:00 am ET.

In the New York session, U.S. durable goods orders and wholesale inventories for January, S&P/Case-Shiller home price index for December and consumer confidence index for February are due.

Federal Reserve Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the House Financial Services Committee in Washington DC at 10:00 am ET.

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