The Australian dollar weakened against other major currencies in the Asian session on Wednesday, after data showed that the consumer prices in Australia rose less than expected in the second quarter of 2017.

Data from the Australian Bureau of Statistics showed that the consumer prices in Australia gained 0.2 percent on quarter in the second quarter of 2017. That was shy of expectations for 0.4 percent and down from 0.5 percent in the three months prior.

On a yearly basis, inflation was up 1.9 percent, also missing expectations for 2.2 percent and down from 2.1 percent in Q1.

Also, the Reserve Bank of Australia's trimmed mean came in at 0.5 percent on quarter, unchanged and matching expectations, and 1.8 percent on year, matching forecasts and down from 1.9 percent in the previous three months.

The RBA's weighted median added 0.5 percent on quarter, in line with expectations and up from 0.4 percent in the three months prior. It was also up 1.8 percent on year, above expectations for 1.7 percent, which would have been unchanged.

Meanwhile, investors are cautious ahead of the U.S. Federal Reserve's monetary policy decision due later in the day. The Fed is widely expected to leave interest rates unchanged, but investors will be paying close attention to the accompanying statement for clues regarding future rate hikes.

Tuesday, the Australian dollar showed mixed trading against its major rivals. While the aussie rose against the U.S. dollar, the yen and the kiwi, it fell against the loonie. Against the euro, the aussie held steady.

In the Asian trading, the Australian dollar fell to nearly a 2-week low of 0.9871 against the Canadian dollar and a 5-day low of 0.7887 against the U.S. dollar, from yesterday's closing quotes of 0.9924 and 0.7936, respectively. If the aussie extends its downtrend, it is likely to find support around 0.97 against the loonie and 0.77 against the greenback.

Against the euro and the NZ dollar, the aussie dropped to 2-day lows of 1.4754 and 1.0627 from yesterday's closing quotes of 1.4673 and 1.0701, respectively. The aussie may test support near 1.50 against the euro and 1.05 against the kiwi.

The aussie edged down to 88.32 against the yen, from an early 5-day high of 88.92. On the downside, 87.00 is seen as the next support level for the currency.

Meanwhile, the other antipodean currency, the NZ dollar, also fell against its major rivals.

In other economic news, data from Statistics New Zealand showed that New Zealand had a merchandise trade surplus of NZ$242 million in June.That beat expectations of a surplus of NZ$150 million following the NZ$$103 million surplus in May.

Exports jumped 11.0 percent on year to NZ$4.70 billion, exceeding expectations of NZ$4.60 billion but was down from NZ$4.92 billion in the previous month. Imports advanced an annual 7.7 percent to NZ$4.46 billion versus forecasts for NZ$4.40 billion and down from NZ$4.84 billion a month earlier.

The NZ dollar fell to 82.97 against the yen, from an early near 2-week high of 83.24. The kiwi may test support near the 81.00 region.

Against the U.S. dollar and the euro, the kiwi dropped to 0.7411 and 1.5703 from early highs of 0.7436 and 1.5657, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.73 against the greenback and 1.58 against the euro.

Looking ahead, Swiss Credit Suisse economic expectations index for July and U.K. GDP for the second quarter are due to be released later in the day.

In the New York session, U.S. new home sales data for June and U.S. crude oil inventories data are slated for release.

At 2:00 pm ET, the U.S. Federal Reserve's monetary policy decision is due to be announced. The Federal Open Market Committee is widely expected to leave interest rates unchanged at below 1.25 percent.

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