The Australian dollar strengthened against other major currencies in the Asian session on Wednesday, as Asian stocks traded higher amid easing concerns about turmoil in the financial sector following recent coordinated steps taken by governments and the central banks to rescue distressed banks in the U.S. and Europe.

Markets turned positive following the remarks by U.S. Treasury Secretary Janet Yellen, who said the government is prepared to take action again to protect bank depositors if smaller lenders are threatened.

Traders also looked ahead to the U.S. Fed's highly anticipated monetary policy announcement later in the day. While the recent banking turmoil led to some speculation that the Fed may leave interest rates unchanged, CME Group's FedWatch Tool is currently indicating an 86.4 percent chance of a 25-basis point rate hike.

Crude oil prices climbed higher Tuesday, gaining for a second straight session amid improving risk sentiment thanks to the coordinated efforts by major central banks to rescue troubled U.S. and European lenders. West Texas Intermediate Crude oil futures for April ended higher by $1.69 or 2.5 percent at $69.33 a barrel.

In the Asian session today, the Australian dollar rose to nearly a 2-week high of 1.0805 against the NZ dollar and a 2-day high of of 88.79 against the yen, from yesterday's closing quotes of 1.0761 and 88.32, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.09 against the kiwi and 91.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie advanced to 0.6690 and 0.9167 from yesterday's closing quotes of 0.6666 and 0.9141, respectively. On the upside, the next resistance level for the aussie is seen around 0.68 against the greenback and 0.93 against the loonie.

The aussie edged up to 1.6105 against the euro, from yesterday's closing value of 1.6134. The EUR/AUD pair may find its resistance level around the 1.55 area.

Meanwhile, the safe-haven yen traded lower against its major rivals as Asian stocks traded higher.

The Japanese yen fell to a 1-week low of 143.03 against the euro, from yesterday's closing value of 142.62. The yen may find its support around the 146.00 level.

Against the U.S. dollar and the Swiss franc, the yen dropped to 5-day lows of 132.77 and 143.93 from yesterday's closing quotes of 132.48 and 143.55, respectively. If the yen extends its downtrend, it is likely to find support around 138.00 against the greenback and 148.00 against the franc.

Against the NZ dollar, the yen slipped to a 2-day low of 82.23 from yesterday's closing quote 82.05. The NZD/JPY pair may find its support around the 85.00 area.

The yen edged down to 162.21 against the pound and 96.88 against the Canadian dollar, from yesterday's closing quotes of 161.79 and 96.61, respectively. The next support level for the yen is seen around 167.00 against the pound and 100.00 against the loonie.

Looking ahead, U.K. consumer, producer and retail price indexes for February are due to be released at 3:00 am ET.

In the New York session, Canada new housing price index for February and U.S. EIA crude oil inventories data are slated for release.

The Federal Reserve's two-day monetary policy meeting conclude later in the day. The U.S. central bank is widely expected to raise the interest rate by 25 basis points.

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