The U.S. dollar strengthened against its major counterparts in the Asian session on Wednesday, along with treasury yields, as investors awaited the Fed minutes from the recent meeting that struck a neutral stance on interest rates.
The minutes from the latest Fed meeting are due out at 2:00 pm ET.
In his press conference, Fed Chairman Powell remarked that the recent shortfall in inflation may be transitory and the bank is expected to keep its policy unchanged for the foreseeable future.
The currency got further boost on easing trade tensions as the Commerce Department temporarily eased trade restrictions on Chinese tech giant Huawei and Google said it would continue to work with Huawei over the next 90 days.
The greenback appreciated to 0.6494 against the kiwi, its highest since October 22. Next key resistance for the greenback is possibly seen around the 0.63 level.
Data from Statistics New Zealand showed that NZ retail sales rose a seasonally adjusted 0.7 percent on quarter in the first three months of 2019 - exceeding forecasts for a rise of 0.6 percent following the 1.7 percent jump in the three months prior.
The total value of retail sales rose 0.2 percent on quarter.
The greenback edged up to 1.3417 against the loonie and 0.6871 against the aussie, from its early lows of 1.3395 and 0.6887, respectively. On the upside, 1.36 and 0.67 are likely seen as the next resistance levels for the greenback against the loonie and the aussie, respectively.
The greenback rose to 1.0119 against the franc, from a low of 1.0102 hit at 5:30 pm ET. The greenback is seen finding resistance around the 1.03 level.
The greenback climbed to 1.2663 against the pound, a level unseen since January 4. The next key resistance for the greenback is likely seen around the 1.24 level.
The greenback advanced to 1.1149 against the euro, after falling to 1.1166 at 8:00 pm ET. If the greenback rises further, 1.10 is possibly seen as its next resistance level.
On the flip side, the greenback pared gains to 110.37 against the yen, from an early high of 110.63. The greenback is poised to challenge support around the 109.00 area.
Bank of Japan board member Yutaka Harada said monetary easing should be strengthened further without delay.
"If the economy deteriorates to the extent that achieving the 2 percent price stability target in the long term becomes difficult, I view it as necessary to strengthen monetary easing without delay," he told business leaders in Nagasaki.
Looking ahead, U.K. consumer and producer prices for April, house price index for March and public finances for April are due in the European session.
In the New York session, Canada retail sales for March and Federal Reserve's minutes from the May meeting are scheduled for release.
At 10:00 am ET, New York Fed President John Williams will speak about US homeownership at the Federal Reserve Bank of New York.