On Monday, investors will look closely at the Bank of China's benchmark interest rate decision to see if the central bank is trying to maintain its stimulus bias. Markets are likely to ignore the IFO German business climate report, as PMIs released this week provided ample evidence of a rebound in German activity in February.

The key events of Tuesday will be the speech of Fed Chairman Powell and the Eurozone CPI report. Inflation in the Eurozone is expected to rise from -0.3% in December to 0.9% in January.

Bank of New Zealand will decide on the interest rate on Wednesday. No changes in the policy are expected, however NZD is well positioned to rise thanks to a rapid recovery in commodity prices and global trade.

On Thursday, investors will be watching the release of such reports as durable goods orders, GDP and sales in the US housing market. In the event of upside surprise in the data, the dollar should be poised to extend its slide, possibly below key level of 90 in DXY. The foundation of the bearish USD medium-term view is a mix of ultra-low Fed interest rates, its growing tolerance of inflation pressures, expectations of fiscal stimulus package and growing signs of US economic recovery.

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