Antipodean currencies such as the Australian and the New Zealand dollars weakened against their major counterparts in the Asian session on Wednesday, as investors turned more risk averse due to mounting geopolitical tensions.

North Korea warned of 'catastrophic consequences' to the U.S. government's 'outrageous actions' to deploy a navy strike group to the Korean Peninsula. The hermit state said its "nuclear sight was focused on the U.S. invasionary bases."

U.S. President Donald Trump has vowed that the U.S. will single-handedly handle the nuclear threat from North Korea if China is not going to solve it.

Meanwhile, the Antipodean currencies showed muted reaction to the recent China data.

Data from the National Bureau of Statistics showed that the consumer prices in China were up 0.9 percent on year in March. That was shy of expectations for 1.0 percent, but it was still up from 0.8 percent in February. On a monthly basis, consumer prices slipped 0.3 percent after falling 0.2 percent in the previous month.

Producer prices jumped an annual 7.6 percent in March, exceeding expectations for 7.5 percent but down from 7.8 percent in the three months prior.

On the economic front, the latest survey from Westpac Bank revealed that consumer confidence in Australia slipped slightly in April, easing 0.7 percent to a score of 99.0. That follows the 0.1 percent increase in March to 99.7.

Tuesday, the Australian and the New Zealand dollars showed mixed trading against their major counterparts. While the aussie and the kiwi rose against the U.S. dollar, they fell against the yen and the euro.

In the Asian trading, the Australian dollar fell to nearly a 5-month low of 81.89 against the yen, from yesterday's closing value of 82.18. The aussie may test support near the 80.00 region.

Against the euro, the aussie dropped to 1.4170 from yesterday's closing value of 1.4144. On the downside, 1.44 is seen as the next support level for the aussie.

Against the U.S. and the Canadian dollars, the aussie slipped to 0.7484 and 0.9980 from yesterday's closing quotes of 0.7498 and 0.9990, respectively. If the aussie extends its downtrend, it is likely to find support around 0.73 against the greenback and 0.98 against the loonie.

The NZ dollar fell to nearly a 5-month low of 75.89 against the yen, from yesterday's closing value of 76.23. The kiwi is likely to find support around the 74.00 region.

The kiwi dropped to 1.5291 against the euro, from yesterday's closing value of 1.5243. On the downside, 1.54 is seen as the next support level for the kiwi.

Against the U.S. and the Australian dollars, the kiwi edged down to 0.6933 and 1.0799 from yesterday's closing quotes of 0.6957 and 1.0771, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.67 against the greenback and 1.09 against the aussie.

Meanwhile, the safe-haven yen rose against its major rivals amid rising risk aversion.

On the economic front, the Cabinet Office said that core machine orders in Japan advanced a seasonally adjusted 1.5 percent on month in February, standing at 850.5 billion yen. That missed expectations for an increase of 3.6 percent following the 3.2 percent decline in January.

The Bank of Japan said that producer prices were up 0.2 percent on month in March, shy of expectations for a gain of 0.3 percent, which would have been unchanged from February following an upward revision from 0.2 percent.

Overall bank lending was up 3.0 percent on year in March, coming in at 513.060 trillion yen. That matched forecasts and was up from 2.8 percent in February.

The yen rose to nearly a 3-month high of 136.52 against the pound, from yesterday's closing value of 136.92. The yen may test resistance around the 135.00 region.

Against the U.S. and the Canadian dollars, the yen advanced to nealy a 5-month high of 109.34 and an 8-day high of 82.01 from yesterday's closing quotes of 109.61 and 82.23, respectively. If the yen extends its uptrend, it is likely to find resistance around 108.00 against the greenback and 81.00 against the loonie.

Against the euro and the Swiss franc, the yen climbed to near 5-month highs of 115.93 and 108.53 from yesterday's closing quotes of 116.23 and 108.81, respectively. The yen is likely to find resistance around 114.00 against the euro and 107.00 against the franc.

Looking ahead, U.K. unemployment data for February is due to be released at 4:30 am ET.

At 4:00 am ET, Bank of England Governor Mark Carney is expected to speak at the International FinTech Conference, in London.

Also, Christine Lagarde Managing Director of the International Monetary Fund will speak about the global outlook and policy priorities ahead of the upcoming 2017 IMF Spring Meetings, in Brussels at 4:00 am ET.

In the New York session, U.S. import price index for March and U.S. crude oil inventories data are slated for release.

At 10:00 am ET, The Bank of Canada's interest rate decision is due to be announced.The economists expect the bank to hold rates at 0.50 percent.

At 11:15 am ET, Bank of Canada Governor Stephen Poloz and Bank of Canada Senior Deputy Governor Carolyn Wilkins will hold a press conference on Monetary Policy Report in Ottawa.

At 10:00 am ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in moderated question-and-answer session before the Cornerstone Credit Union League Annual Meeting in Fort Worth, Texas.

At 2:00 pm ET, U.S. monthly Federal budget balance is set to be published.

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