The U.S. dollar drifted higher against the other major currencies in early European trading on Wednesday, as investors focus on semi-annual testimony by the Fed Chair Janet Yellen later in the day, which could give more clues about the Fed's outlook on rates and the economy.

Janet Yellen is scheduled to testify before the House Financial Services Committee at 10:00 am ET and is expected signal over an interest rate hike in December.

Besides Yellen, Cleveland Fed President Mester and Kansas City Fed President George are due to speak at separate events, which would offer insights on the economy and monetary policy.

Better-than-expected U.S. consumer confidence and Markit's flash services PMI for September released overnight also underpinned the currency.

San Francisco Fed President John Williams said on Tuesday that the U.S. economy is able to withstand the implications of an interest rate hike, as delaying things too long risks the economy tipping into recession.

"It is getting harder and harder to justify interest rates being so incredibly low given where the U.S. economy is and where it is going," Williams told.

Fed Vice Chairman Stanley Fischer also said that U.S. interest rates should rise over time.

The greenback showed mixed performance in the Asian session. While the greenback rose against the yen and the pound, it held steady against the euro and the Swiss franc.

The greenback bounced off to 100.82 against the Japanese yen, from a low of 100.26 hit at 7:30 pm ET. Continuation of the greenback's uptrend may see it finding resistance around the 103.00 zone.

Survey figures released by the Shoko Chukin Bank showed that Japan's small business confidence improved more than expected in September.

The small business sentiment indicator climbed to 47.7 in September from 46.3 in the prior month. The reading stayed above the expected level of 47.

The greenback rose to a 1-week high of 1.1182 against the euro and a 5-day high of 0.9737 against the Swiss franc, from early lows of 1.1219 and 0.9695, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.10 against the euro and 0.98 against the franc.

The greenback climbed to a 2-day high of 0.7251 against the kiwi, following a decline to 0.7305 at 6:45 pm ET. The greenback is seen finding resistance around the 0.70 level.

The greenback edged up to 1.3231 against the loonie, off its early low of 1.3192. Further uptrend may see the greenback challenging resistance around the 1.33 mark.

U.S. durable goods orders for August and U.S. crude oil inventories data are set to be published in the New York session.

At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify on supervision and regulation before the Committee on Financial Services, in Washington DC.

Ten minutes later, Federal Reserve Bank of St. Louis President James Bullard Fed Bank of Chicago President Charles Evans will deliver speeches on the Community Banking in the 21st Century Conference hosted by the Federal Reserve Bank of St. Louis.

At 10:30 am ET, European Central Bank President Mario Draghi is expected to speak about current developments in the euro area at the German Bundestag, in Berlin.

At 4:30 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is scheduled to speak before the Greater Cleveland Partnership, in Cleveland.

NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more NZD vs US Dollar Charts.
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more NZD vs US Dollar Charts.