During early deals on Wednesday, the Australian dollar slipped to a 5-day low against the Canadian dollar despite a rally in Australian stocks. The Aussie also dropped to a 2-day low against its other major counterparts

The benchmark S&P/ASX 200 Index gained 29.30 points, or 0.82% to close at 3,609, and the broader All Ordinaries Index moved up 0.82%, or 28.90 points, to end at 3,546. The market, having opened unchanged from its previous close, declined in early trading on profit taking. However, the index shrugged off the weakness and moved steadily higher for the rest of the session. Financials and oil stocks led the gains, more than offsetting the weakness among mining stocks.

The Aussie dollar drifted lower against the currency of Canada during Wednesday's early trading. At about 4:30 am ET, the Aussie-loonie pair touched a 5-day low of 67.29, with next downside target level seen at 0.840. The Aussie was quoted 0.8573 against the Canadian currency at yesterday's close.

The Aussie dollar edged down against the greenback and the yen, falling to a 2-day low of 0.6907 and 67.29 by 4:30 am ET, compared to Tuesday's New York session closing value of 0.6957 and 68.09, respectively. On the downside, the next likely target for the Aussie is seen around the 0.672 level against the US dollar and 65.9 level against the Japanese unit.

The yen climbed against its major counterparts today as Japanese Ministry of Finance said that Japan posted a merchandise trade balance of 82.4 billion yen in February. Analysts were expecting a 13.7 billion yen deficit following a 956.9 billion yen shortfall in January.

Addressing business leaders in Otaru, the Bank of Japan Deputy Governor Hirohide Yamaguchi said that Japan's economic and financial conditions will likely continue to be severe. Yamaguchi said that, the central bank is giving higher priority for securing market stability and facilitating corporate financing, which are the second and third main areas of the BoJ's conduct of monetary policy.

The US February durable good orders and new home sales reports are expected later in the New York session. Also, the US Federal Reserve's Pianalto and Yellen are expected to deliver speeches in the afternoon.

Against its European counterpart, the Aussie dipped to 1.9461 by about 4:30 am ET Wednesday. This set a 2-day low for the Aussie. If the Australian currency slides further, the next downside target level is seen around 1.97. The euro-aussie pair closed yesterday's deals at 1.9370.

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