The New Zealand dollar weakened against other major currencies in the Asian session on Wednesday, as traders await key U.S. consumer price inflation readings later in the day that could influence the U.S. Fed's rate trajectory.

Signals of a policy shift in China boosted sentiment, while persisting geopolitical tension due to escalating violence in Syria is weighing on market sentiment.

While the U.S. Fed is widely expected to lower rates by another 25 basis points next week, the data could impact the outlook for future rate cuts by the central bank.

CME Group's FedWatch Tool is currently indicating an 86.1 percent chance the Fed will lower rates by a quarter point next week but a 69.1 percent chance the central bank will then leave rates unchanged in late January.

Investors also focused their attention on the headlines from China's closed-door Central Economic Work Conference, due this week.

The NZ dollar, along with other commodity currencies such as the Australia and the Canadian dollars, fell against its major rivals on Tuesday, after data showed China's exports growth slowed in November and imports declined the most in 14 months, fueling worries about the health of the world's second-largest economy.

In the Asian trading today, the NZ dollar fell to a 1-year low of 0.5789 against the U.S. dollar and more than a 1-month low of 1.8176 against the euro, from yesterday's closing quotes of 0.5799 and 1.8176, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.56 against the greenback and 1.83 against the euro.

Against the yen and the Australian dollar, the kiwi dropped to 2-day lows of 87.73 and 1.1007 from Tuesday's closing quotes of 88.12 and 1.0989, respectively. The kiwi may test support near 86.00 against the yen and 1.11 against the aussie.

Looking ahead, U.S. MBA mortgage approvals data, U.S. CPI data for November, U.S. EIA crude oil data and U.S. monthly budget statement are slated for release in the New York session.

At 9:45 am ET, the Bank of Canada will announce its interest rate decision. The BoC is expected to lower the benchmark rate by 50 basis points, following the same action in October, to 3.25 percent.

Following the announcement of the BoC monetary policy decision, the BoC Governor Tiff Macklem will deliver a speech in a press conference at 10:30 am ET.

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