The Japanese yen was lower against its major counterparts in the Asian session on Wednesday amid safe-haven status, as a slowdown in U.S. consumer inflation supported the case for another quarter-point rate hike by the Federal Reserve next week.

Overnight data showed that U.S. consumer inflation eased to 0.4 percent in February from 0.5 percent in January.

The odds of a 25 basis-point hike by the Fed have risen following the data.

Economic data out of China confirmed that the recovery was well on track.

Chinese retail sales rebounded in the first two months of 2023 and fixed investment grew at a much faster-than-expected clip, while factory activity expanded slightly slower than expected and the jobless rate increased, according to data by the National Bureau of Statistics.

Additionally, China's central bank added liquidity to the banking system via operations of medium-term lending facility.

In economic news, members of the Bank of Japan's Monetary Policy Board said that the country's economy is still being hampered by high commodity prices, but overall still shows signs of steady improvement, minutes from the central bank's January 17-18 meeting revealed.

At the meeting, the BoJ kept its interest rates unchanged at -0.1 percent and modified some of its lending programs. The bank will also continue to purchase a necessary amount of JGBs without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The yen weakened to 5-day lows of 135.06 against the greenback and 147.54 against the franc, from its prior highs of 134.03 and 146.70, respectively. The yen may find support around 138.00 against the greenback and 149.00 against the franc.

The yen dropped to 5-day lows of 144.94 against the euro and 90.19 against the aussie, after rising to 144.00 and 89.60, respectively in early deals. If the currency drops further, 147.00 and 92.00 are possibly seen as its next support levels against the euro and the aussie, respectively.

The yen edged down to 98.59 against the loonie and 83.98 against the kiwi, retreating from its early highs of 98.03 and 83.58, respectively. Next key support for the currency is likely seen around 100.00 against the loonie and 86.00 against the kiwi.

The yen was down against the pound, at 164.03. On the downside, 166.00 is possibly seen as its next support level.

Looking ahead, Eurozone industrial production for January is due in the European session.

At 8:15 am ET, Canada housing starts for February will be published.

UK Chancellor of the Exchequer Jeremy Hunt is set to deliver the Spring Budget 2023 at 8.30 am ET.

U.S. retail sales and PPI for February, as well as business inventories data for January and NAHB housing market index for March will be released in the New York session.

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