The commodity currencies such as the Australian, New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Thursday despite China lowering the yuan's reference rate further on Thursday.

Investors are cautiously optimistic following China's currency devaluation. The People's Bank of China lowered its daily reference rate 1.1 percent to 6.4010 yuan per dollar on Thursday, following reductions of 1.6 percent on Wednesday and 1.9 percent on Tuesday.

Meanwhile, crude oil prices rebounded amid the dollar weakness and the release of official data from the Energy Information Administration showed crude stockpiles in the U.S. to have declined last week, albeit less than expected.

In other economic news, data from the Statistics New Zealand showed that food prices in New Zealand gained 0.6 percent on month in July, following the 0.5 percent gain in June and the 0.4 percent increase in May. On a yearly basis, food prices jumped 1.2 percent after easing 0.1 percent in the previous month and 0.8 percent in May.

Data from Melbourne Institute showed that Australia inflation expectations increased further at a faster pace in August from the previous month. The expected inflation rate rose to 3.7 percent in August from 3.4 percent in July.

Wednesday, commodity currencies fell against their major rivals following Chinese central bank devaluing its currency. The Australian dollar fell 1.05 percent against the U.S. dollar, 0.31 percent against the yen and 0.78 percent against the euro. The NZ dollar fell 1.19 percent against the U.S. dollar, 0.44 percent against the yen and 0.79 percent against the euro. The Canadian dollar fell 1.05 percent against the U.S. dollar, 0.31 percent against the yen and 0.27 percent against the euro.

In the Asian trading, the Australian dollar recovered to 2-day highs of 92.06 against the yen and 1.5046 against the euro, from recent lows of 91.18 and 1.5208, respectively. At yesterday's close, the aussie was trading at 91.68 against the yen and 1.5110 against the euro. If the aussie extends its uptrend, it is likely to find resistance around 94.50 against the yen and 1.47 against the euro.

Against the U.S. and the Canadian dollars, the aussie advanced to 2-day highs of 0.7409 and 0.9603 from recent lows of 0.7331 and 0.9542, respectively. At yesterday's close, the aussie was trading at 0.7382 against the greenback and 0.9579 against the loonie. The aussie may test resistance around 0.74 against the greenback and 0.97 against the loonie.

The NZ dollar rose to 2-day highs of 82.51 against the yen and 1.6756 against the euro, from yesterday's closing quotes of 82.17 and 1.6854, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 83.50 against the yen and 1.65 against the euro.

Against the U.S. dollar, the kiwi edged up to 0.6641 from yesterday's closing value of 0.6617. On the upside, 0.67 is seen as the next resistance level for the kiwi.

The Canadian dollar rose to 2-day highs of 95.94 against the yen and 1.4434 against the euro, from yesterday's closing quotes of 95.69 and 1.4476, respectively. If the loonie extends its uptrend, it is likely to find resistance around 97.50 against the yen and 1.41 against the euro.

Against the U.S. dollar, the loonie edged up to 1.2955 from yesterday's closing value of 1.2975. The loonie may test resistance around the 1.28 area.

Meanwhile, the Australian dollar fell to 1.1118 against the NZ dollar earlier and held steady thereafter.

Looking ahead, final German CPI estimate for July is due to be released at 2:00 am ET.

Swiss producer and import prices for July are also set to be announced later on in the day.

At 7:30 am ET, the European Central Bank is set to publish the minutes of its July policy meeting.

In the New York session, U.S. advance retail sales data for July, U.S. weekly jobless claims for the week ended August 8 and Canada new housing price index for June are slated for release.

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