SINGAPORE, Feb 26 Reuters The dollar was on the front foot on Monday ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook, with a U.S. inflation reading taking centre stage.

The core personal consumption expenditures PCE price index the Federal Reserve39;s preferred measure of inflation is due on Thursday, where expectations are for a 0.4 increase on a monthly basis.

Inflation figures in the euro zone, Japan and Australia also fill the data calendar this week, alongside a rate decision from the Reserve Bank of New Zealand RBNZ and PMI readings in China.

Ahead of the releases, the greenback edged broadly higher, pushing the Australian dollar down 0.16 to 0.6553, while the New Zealand dollar fell 0.5 to 0.6167.

The kiwi had risen 1.2 last week, helped by broad dollar weakness and the risk of a rate hike from the RBNZ on Wednesday, though most economists expect the central bank to keep rates steady.

I think the RBNZ will keep the OCR official cash rate unchanged and that will likely cause the kiwi to fall if markets unwind pricing for a nearterm rate hike, said Carol Kong, a currency strategist at Commonwealth Bank of Australia CBA.

But any falls in the kiwi will likely be pretty small because we expect the RBNZ to remain pretty hawkish.

Sterling fell 0.03 to 1.26675, while the euro rose 0.02 to 1.0823.

INFLATION CONUNDRUM

Japan39;s nationwide consumer prices are due on Tuesday and are…