The Australian and New Zealand dollars strengthened against their major currencies in the Asian session on Wednesday after the results of a private survey released earlier today showed that China's manufacturing sector rebounded unexpectedly in February.

Flash data from Markit Economics showed that the HSBC flash manufacturing PMI rose to a four-month high of 50.1 in February from 49.7 in January. Economists expected the index to come in at 49.5. The latest reading marked a slight expansion of manufacturing activity.

In other economic news, data from the Australian Bureau of Statistics showed that the total value of construction work done in Australia fell less than expected in the fourth quarter.

Another data showed that the wage costs in Australia were up a seasonally adjusted 0.6 percent on quarter in the fourth quarter of 2014 - in line with expectations and unchanged from the third quarter.

Meanwhile, the Asian stock markets are advancing amid the increase in risk appetite.

At the semi-annual monetary policy testimony before the Senate Banking Committee on Tuesday, U.S. Federal Reserve chair Janet Yellen indicated that the Fed is not likely to begin raising interest rates in at least the next couple of monetary policy meetings.

The Fed Chief also suggested that the central bank will hike interest rates only when they are "reasonably confident" that annual inflation is moving back toward their 2 percent target.

Greece's package of proposed economic reforms to euro group was approved by its euro zone creditors on Tuesday, securing an extension of its financial lifeline of bailout for another four months.

Tuesday, the Australia and New Zealand dollar fell against the other major currencies. The Australian dollar fell 0.37 percent against the U.S. dollar, 0.50 percent against the yen, 0.34 percent against the euro and 0.34 percent against the Canadian dollar. The NZ dollar fell 0.35 percent against the U.S. dollar, 0.27 percent against the yen and 0.51 percent against the euro.

In the Asian trading today, the Australian dollar rose to nearly a 4-week high of 0.7884 against the U.S. dollar, a 4-week high of 93.56 against the yen and a 5-day high of 1.4386 against the euro, from yesterday's closing quotes of 0.7830, 93.15 and 1.4478, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.81 against the greenback, 97.16 against the yen and 1.40 against the euro.

Against the Canadian dollar, the aussie edged up to 0.9824 from yesterday's closing value of 0.9774. On the upside, 1.00 is seen as the next resistance level for the aussie.

The NZ dollar rose to a 2-day high of 0.7535 against the U.S. dollar from yesterday's closing value of 0.7489. The kiwi may test resistance near the 0.77 region.

Against the yen and the euro, the kiwi edged up to 89.41 and 1.5051 from yesterday's closing quotes of 89.09 and 1.5134, respectively. The kiwi is likely to find resistance around 92.50 against the yen and 1.47 against the euro.

Looking ahead, Swiss UBS consumption indicator for January is due to be released at 2:00 am ET.

U.K. BBA mortgage approvals for January is also set to be published later on in the session.

At 5:00 am ET, Bank of England Governor Mark Carney is scheduled to launch a new research agenda for the central bank in London.

In the New York session, U.S. new home sales for January is due.

At 10:00 am ET, Yellen is due to testify before the House Financial Services Committee in Washington D.C.

Subsequently, European Central Bank President Mario Draghi will take part in a plenary debate on the ECB's Annual Report 2013 at the European Parliament in Brussels at 11:30 am ET.

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