The Canadian dollar spiked up against its most major rivals in the New York session on Wednesday, as a data showed that the nation's annual inflation accelerated to a fresh 30-year high in January.

Data from Statistics Canada showed that the consumer price index rose 5.1 percent on a year-over-year basis in January, up from a 4.8 percent gain in December. This was the highest inflation rate since September 1991. Economists had expected a 4.8 percent increase.

On a seasonally adjusted monthly basis, the CPI climbed to 0.6 percent from 0.3 percent in December.

Core CPI, excluding food and energy, grew 0.4 percent from 0.3 percent last month.

The loonie firmed to 1.2663 against the greenback, its strongest level since February 10. The loonie is seen facing resistance around the 1.25 level.

The loonie edged up to 1.4388 against the euro, from a low of 1.4459 hit at 2:45 am ET. If the loonie rises further, 1.42 is likely seen as its next resistance level.

The loonie rebounded to 0.9074 against the aussie, after declining to a 5-day low of 0.9117 in the previous session. The loonie may challenge resistance around the 0.89 level.

In contrast, the loonie pulled back to 90.94 against the yen, from a 5-day high of 91.40 it touched immediately following the data. The next likely support for the currency is seen around the 88.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity rose at a softer pace in December.

The tertiary activity index rose 0.4 percent month-on-month in December, after 0.7 percent increase in November.

Looking ahead, the Fed minutes from the January 25-26 meeting are set for release at 2:00 pm ET.

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