The NZ dollar depreciated against its major counterparts in the Asian session on Tuesday, after China's top financial regulator said that he is concerned about risks arising from bubbles in financial markets and huge inflow of foreign capital as economies are still facing headwinds from the pandemic.

Bubbles in US and European markets could burst because their rallies are heading in the opposite direction of their underlying economies and would have to face corrections "sooner or later," Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission (CBIRC) and Party secretary of the central bank said.

Guo's comments stocked concerns about further tightening in the world's second-biggest economy.

Oil prices dropped amid worries that OPEC and its allies could consider raising output when they meet later this week.

On the virus front, the number of new coronavirus infections globally rose for the first time in almost two months in the past week due to relaxing of public health measures, circulation of variants and people letting down their guard, the World Health Organization said.

Traders await a series of Fed speeches this week, culminating with Powell on Thursday and the February U.S. employment report due on Friday, which will provide an update on the speed and direction of the nation's labor market recovery.

The kiwi edged down to 0.7240 against the greenback, following an advance to 0.7280 at 7:15 pm ET. If the kiwi weakens further, 0.70 is possibly seen as its next support level.

The kiwi pulled back to 77.31 against the yen, after touching a 4-day high of 77.78 at 7:15 pm ET. The kiwi may challenge support around the 74.00 mark.

The kiwi fell to a 4-day low of 1.0714 against the aussie, off its prior high of 1.0667. The kiwi is seen finding support around the 1.09 region.

Australia's central bank left its cash rate and asset purchase programme unchanged and indicated that it will not raise the rate until inflation returns to the target range.

The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to hold its cash rate at a record low of 0.10 percent.

The NZ currency eased off from an early high of 1.6541 against the euro and was trading at 1.6597. The next possible support for the currency is seen around the 1.72 level.

Looking ahead, German retail sales for January and U.K. Nationwide house prices for February are due out at 2:00 am ET.

German jobless rate and Eurozone CPI for February will be featured in the European session.

Canada GDP data for the fourth quarter will be published in the New York session.