The Australian dollar pared its early Asian session gains against other major currencies on Wednesday. The aussie thus slipped to a 2-day low against the Japanese yen.

The Australian stock market pared initial losses and was trading higher today, led by banks and oil-related stocks.

In late morning trades, the benchmark S&P/ASX 200 Index was gaining 28.70 points, or 0.80%, to 3,608.70 and the broader All Ordinaries Index was advancing 28.40 points, or 0.81%, to 3,545.70.

Against the US dollar, the Australian currency lost ground after hitting a high of 0.6998 during early Asian deals on Wednesday. At 9:15 pm ET, the aussie-dollar pair slipped to 0.6943, compared to 0.6957 hit late New York Tuesday. The pair is currently trading at 0.6965 with 0.664 seen as the next target level.

The Australian dollar that closed Tuesday's North American session at 1.9370 against the European currency climbed to 1.9278 at 8:00 pm ET. Thereafter, the aussie reversed its direction and is currently quoted at 1.9356 against the euro. The next downside target level for the Australian currency is seen around 1.955.

The Australian dollar that hit a high of 68.81 against the Japanese yen during Wednesday's early Asian deals weakened thereafter. At 9:15 pm ET, the aussie-yen pair touched a 2-day low of 67.73, compared to Tuesday's closing value of 68.09. If the pair falls further, 65.3 is seen as the next target level. The Australian currency is currently quoted at 68.09.

The yen gained ground after the 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.

Exports plummeted by a record 49.9 percent on year, the data showed, while imports fell 43.0 percent on year to 3.443 trillion yen. Exports have fallen in five straight months, while imports are lower now in four straight months.

Later in the day, the Bank of Japan Deputy Governor Hirohide Yamaguchi will speak at a business meeting in Otaru City.

Against its Canadian counterpart, the Australian dollar declined to 0.8549 at 9:10 pm ET, moving from an early Asian session high of 0.8597. On the downside, 0.849 is seen as the next target level for the aussie. The aussie-loonie pair that closed Tuesday's New York deals at 0.8573 is currently trading at 0.8575.

In the euro area, traders are awaiting the German IFO business sentiment survey report on current business conditions as well as the future expectations, in the upcoming session.

Additionally, the Italian consumer confidence report for March is slated for release at 4:30 AM ET. Analysts expect the headline figure to drop to 103.0 from 104.1 in February.

Across the Atlantic, the Commerce Department is set to release its durable goods orders report at 8:30 AM ET. Economists look forward to a 2% decline in the durable goods orders for February.

The Commerce Department is due to release its new home sales report for February at 10 AM ET. The consensus estimate calls for a decline in new homes sales to 300,000.

The Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 AM ET.

Cleveland Federal Reserve Bank Sandra Pianalto is due to deliver a speech on forces for economic recovery Regional Growth Partnership luncheon in Maumee, Ohio at 12:20 PM ET. San Francisco Federal Reserve Bank Janet Yellen is scheduled to deliver a speech to the Forecasters Club of New York on the U.S. economic situation and policy responses in New York at 12:30 PM ET.

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