The Australian and New Zealand dollars depreciated against their major rivals in the Asian session on Wednesday, amid rising risk aversion on concerns about higher inflation and a possible policy tightening by the U.S. Federal Reserve.

The risk of rising coronavirus infections and extended lockdowns in several parts of Asia raised doubts over the economic recovery.

Investors turn their attention to the minutes of the Federal Reserve's April monetary policy meeting, which will offer policymakers' views about the strength of the economic rebound, inflation and potential timing of any monetary policy adjustments.

Data from the Australian Bureau of Statistics showed that Australia wage price index rose a seasonally adjusted 0.6 percent on quarter in the first three months of 2021. That exceeded expectations for 0.5 percent and was unchanged from the three months prior. On a yearly basis, the WPI advanced 1.5 percent - beating forecasts for 1.4 percent, which would have been unchanged.

The latest survey from Wetspac Bank and the Melbourne Institute showed that Australia consumer confidence fell 4.7 percent on month to 113.1 in May, from an eleven-year high of 118.8 in April.

The aussie dropped to 0.7772 against the greenback and 84.70 against the yen, after rising to 0.7798 and 84.96, respectively in early deals. The aussie is seen finding support around 0.75 against the greenback and 80.00 against the yen.

The Australian currency eased off to 0.9373 against the loonie, from a high of 0.9407 seen at 7:30 pm ET. If the aussie slides further, 0.92 is possibly seen as its next support level.

The aussie fell to a 3-1/2-month low of 1.5752 against the euro, off its early high of 1.5662. The currency is likely to find support around the 1.60 level.

The kiwi weakened to 0.7218 against the greenback and 78.66 against the yen, down from its prior highs of 0.7247 and 78.97, respectively. The next possible support for the kiwi is seen around 0.70 against the greenback and 76 against the yen.

Retreating from its previous highs of 1.6862 against the euro and 1.0741 against the aussie, the kiwi dropped to a 5-week low of 1.6953 and a 2-day low of 1.0777, respectively. Next likely support for the currency is seen around 1.72 against the euro and 1.09 against the aussie.

Looking ahead, Eurozone CPI for April is scheduled for release in the European session.

Canada CPI for April is due out in the New York session.

The Fed minutes from the April 27-28 meeting are set for release at 2:00 pm ET.

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