USDJPY United States Dollar vs Japanese Yen

The Australian dollar strengthened against most major currencies in the Asian session on Wednesday, after data showed that the consumer confidence in Australia saw a positive bounce in July.

Data from Westpac Bank showed that the consumer confidence in Australia saw a positive bounce in July, advancing 0.4 percent to a score of 96.6. That follows the 1.8 percent decline in June to a reading of 96.2.

The July reading snapped three months of decline.

The currency strength is also supported by firmer iron ore prices. Iron ore prices rose to near a two-month high by 2.1 percent to $65.40 a tonne.

Crude oil delivery for August is currently up by 0.86 percent or $45.90 per barrel. The crude oil prices rose after U.S officials lowered their domestic oil production outlook for next year and also an industry report showed that U.S. crude inventories fell more than expected.

The Energy Information Administration cut the 2018 U.S. oil-output forecast by 1 percent to 9.9 mln bbls/day.

Meanwhile, the investors remain cautious ahead of Federal Reserve Chair Janet Yellen's Congressional testimony later in the day and as investors digested the release of a series of emails by Donald Trump Jr. that cited Russian support for his father's 2016 presidential campaign.

In the Asian trading, the Australian dollar rose to a 1-1/2-month high of 1.0596 against the NZ dollar, from yesterday's closing value of 1.0570. The aussie may test resistance around the 1.07 region.

Against the U.S. and the Canadian dollars, the aussie advanced to 8-day highs of 0.7664 and 0.9888 from yesterday's closing quotes of 0.7637 and 0.9860, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.78 against the greenback and 1.00 against the loonie.

The aussie edged up to 1.4978 against the euro, from yesterday's closing value of 1.5013. On the upside, 1.48 is seen as the next resistance level for the aussie.

Looking ahead, U.K. jobs data and Eurozone industrial production, both for May, are to be released later in the day.

In the New York session, U.S. crude oil inventories data is set to be published.

At 10:00 am ET, Federal Reserve Chair Janet Yellen is expected to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC.

The Bank of Canada will announce its monetary policy decision and monetary policy report followed by a press conference at 10:00 am ET. Economists expect the Central Bank to raise its main policy rate to 0.75 percent from 0.5 percent.

At 2:00 pm ET, U.S. Federal Reserve releases its Beige Book report.

At 2:15 pm ET, Federal Reserve Bank of Kansas City President Esther George is expected to speak on the economic outlook and the Federal Reserve's balance sheet before an economic forum hosted by the Federal Reserve Bank of Kansas City Denver Branch.

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