Dollar and Yen Lower on Greece Optimism, RBNZ on Hold

Dollar and yen are lower as risk aversion recedes mildly in Asia today as more investors agreed to join the Greek debt swap program ahead of tonight's deadline. It's reported that around 60% of the investors in Greek bonds eligible for the debt swap have agreed on the 'voluntary' restructuring. Greek government spokesman Yiannis Stavropoulos stated in an interview that "the information we have so far is positive". It's likely that the thresholds will be met, and collective action clauses would not be used. The program aims to lower the EUR 206b Greek debts by up to EUR 107B and is a precondition for the debt-ridden country to tap the new bailout fund worth EUR 130B.

The RBNZ left the OCR unchanged at 2.5% but the central bank pulled back the timing for the first rate hike. Policymakers believed that the 'sustained strength' in the New Zealand dollar would reduce the need to tightening. The country's economic indicators recorded recently have been disappointing with trade deficits unexpectedly of NZD 199.2m unexpectedly recorded in January, following a surplus of NZD 305.9m in the prior month. As the Finance Minister Bill English stated, a return to surplus 'won't be easy'. Yet, 'it is one of the most important things the government can do to ensure New Zealand can withstand future shocks and build a more competitive economy based on exports and new jobs'. Three central banks, the BoC, the ECB and the BoE, will hold meetings for monetary decisions later today. All are expected to leave policy unchanged.

Economic data was overshadowed by general market sentiments. Japan's Q4 GDP was vised higher to -0.2% qoq. Australia employment unexpectedly dropped -15.4k in February while unemployment rate rose to 5.2%. Both are basically ignored by the markets. Looking ahead, other than the central bank announcements, Swiss, CPI, German industrial production, US initial claims, challenger job cuts, Canada housing starts and new housing price index will be released.