FOREX-Yen slips in quiet session, inflation next test for Aussie

* Yen softer, others mostly drifting sideways

* No major drivers overnight, position adjustments dominate

* Australia CPI data next test for AUD

By Ian Chua

SYDNEY, April 22 (Reuters) - The yen nursed modest losses early in Asia on Wednesday, while the other major currencies drifted in familiar ranges with investors seemingly lacking enough conviction to break to new ground.

The dollar last stood at 119.70 yen, not far from a one-week high of 119.83 set overnight. The euro was back around 128.50 yen, having climbed from a low of 127.45.

Notably, the New Zealand dollar touched a three-month high of 92.10 yen, before easing back to 91.71 yen.

"Markets were quiet overnight with no major news to drive proceedings," noted Imre Speizer, a senior strategist at Westpac.

The euro managed to hold steady above $1.0700 after attempts to push it lower ended in failure. Traders said that prompted a squeeze in short positions that lifted it off $1.0660.

Traders see no reason to buy the euro, however, with Greece's debt negotiations still hanging in the balance.

Athens risks running out of cash within weeks and has so far been unable to reach an agreement with its lenders on a deal that will disburse further aid.

Euro zone finance ministers will meet later in the week to assess progress made by Greece in its reform pledges.

Asia has little to offer in terms of market-moving data except Australia, which will publish its quarterly inflation figures at 0030 GMT.

The Aussie dollar managed to creep above 77 U.S. cents overnight, off this week's trough of $0.7683 set on Tuesday.

Dovish signals from Reserve Bank of Australia Glenn Stevens and minutes of the central bank's April 7 meeting had weighed on the currency this week.

The market consensus is for underlying measures of consumer price index to rise 0.5-0.6 percent on the quarter.

"Something lower might re-open prospects of a May easing somewhat," said David de Garis, senior economist at NAB.

De Garis said a reading of 0.6 percent-plus would argue for the RBA to stand pat in May, and that should provide some support for the Aussie dollar. (Editing by Eric Meijer)