The New Zealand dollar spiked higher against its major trading partners in the Asian session on Wednesday, after the Reserve Bank of New Zealand lifted its official cash rate by 50 basis points and signaled further hikes to ensure that consumer inflation returns to the target range.

The Monetary Policy Committee decided to raise the country's OCR to 2 percent from 1.5 percent, as expected.

It marked the fifth increase in the OCR from a record low of 0.25 percent.

The RBNZ said that a larger and earlier increase in the OCR reduced the risk of persistent inflation and provided more policy flexibility going forward in light of the highly uncertain global economic environment.

The Committee agreed to continue to lift the OCR at pace to a level that will confidently bring consumer price inflation to within the target range.

The RBNZ Monetary Policy Committee agreed that higher rates are necessary to bring consumer inflation within the target range over the next two years.

The kiwi climbed to nearly a 3-week high of 0.6514 against the greenback, rising 1.5 percent from a 2-day low of 0.6418 seen at 9:45 pm ET. The pair had finished Tuesday's deals at 0.6462. The kiwi may face resistance around the 0.68 region, if it gains again.

The kiwi gained 1 percent against the yen, touching a 2-day high of 82.77. The pair was valued at 81.91 when it ended trading on Tuesday. Further rally in the currency may challenge resistance around the 84.00 region.

The kiwi added 1 percent to hit a 2-day high of 1.6422 against the euro. The euro-kiwi pair was quoted at 1.6603 at Tuesday's close. Immediate resistance for the kiwi is likely seen around the 1.62 level.

The kiwi has risen to its highest level since May 2 against the aussie, at 1.0923. This followed a 5-day low of 1.1027 it recorded at 9:45 pm ET. The kiwi had finished yesterday's trading session at 1.0991 against the aussie. Should the currency rallies again, 1.075 is possibly seen as its next resistance level.

Looking ahead, Swiss economic sentiment index for May will be published in the European session.

U.S. durable goods orders for April will be featured in the New York session.

The Fed minutes from the May 3-4 meeting is set for release at 2:00 pm ET.

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