The Australian and NZ dollars climbed against their most major counterparts in the Asian session on Wednesday, as U.S. rate hike fears eased following dovish comments from Federal Reserve officials rejecting the need for bigger moves to combat inflation.
Chicago Fed President Charles Evans said on Tuesday that he favors two half-point rate hikes at upcoming meetings and move rate to 2.25-2.50 percent by the end of the year.
Atlanta Fed president Raphael Bostic said that a 75 basis point rate hike is not on the cards and expressed concerns about the impact of faster policy tightening on the U.S. economic recovery.
Bostic added that the neutral rate could be between 2 percent and 2.5 percent and the funds rate could be as low as 1.75 percent.
Encouraging corporate earnings also bolstered risk sentiment.
China's central bank maintained the one-year loan prime rate at 3.7 percent and the five-year rate at 4.6 percent, defying expectations for a reduction this month.
The aussie firmed to 6-day highs of 0.7431 against the greenback and 1.4556 against the euro, up from its prior lows of 0.7371 and 1.4635, respectively. The aussie is seen finding resistance around 0.77 against the greenback and 1.44 against the euro.
Reversing from its early lows of 0.9298 against the loonie and 1.0940 against the kiwi, the aussie moved up to a 5-day high of 0.9349 and a 1-1/2-year high of 1.0976, respectively. The aussie is likely to challenge resistance around 0.96 against the loonie and 1.12 against the kiwi.
In contrast, the aussie pulled back to 94.91 against the yen, after jumping to nearly a 7-year high of 95.74 at 8:50 pm ET. Next key support for the aussie is likely seen near the 92.00 level.
The kiwi touched 2-day highs of 0.6773 against the greenback and 1.5964 against the euro, off its early lows of 0.6725 and 1.6025, respectively. The kiwi may locate resistance around 0.70 against the greenback and 1.56 against the euro.
The kiwi, however, eased off to 86.59 against the yen, from nearly a 7-year high of 87.35 hit at 9:05 pm ET. If the kiwi slides further, 83.00 is likely seen as its next support level.
Looking ahead, Eurozone trade data and industrial production for February are due in the European session.
U.S. existing home sales, Canada CPI and new housing price index, all for March, are scheduled for release in the New York session.
