The Australian and NZ dollars strengthened against their major opponents in the Asian session on Wednesday amid rising risk appetite, with optimism on China's economy and fading prospects of an imminent increase to U.S. interest rates underpinning risk sentiment ahead of central bank meetings on Thursday.

Market participants are awaiting policy statements from both the Bank of Japan and the European Central Bank due tomorrow, although no big changes are expected.

Raft of upbeat economic data from China early this week continued to lift investor mood. China second quarter GDP data, industrial output and retail sales - all beat expectations, signaling a pickup in economic growth momentum.

The latest survey from Westpac Bank revealed that a leading index for the Australian economy continued to show pessimism in June, and at a sharper rate. The index was down 0.14 percent after easing an upwardly revised 0.01 percent in May.

The aussie rose on Tuesday, as the Reserve Bank of Australia's minutes of the July 4 meeting showed an upbeat assessment of the economy. But the kiwi showed mixed performance against its major rivals. While the kiwi rose against the greenback, it fell against the euro. Against the yen, it held steady.

The aussie strengthened to a 2-1/2-month high of 1.4526 against the euro and more than a 2-year high of 0.7947 against the greenback, off its early lows of 1.4592 and 0.7916, respectively. If the aussie extends rise, it may find resistance around 1.42 against the euro and 0.81 against the greenback.

The aussie rose to 1.0035 against the loonie and 89.02 against the yen, from Tuesday's closing values of 0.9995 and 88.70, respectively. The aussie is seen finding resistance around 1.02 against the loonie and 90.00 against the yen.

The kiwi that closed Tuesday's trading at 1.5718 versus the euro rose to 1.5623. The kiwi is likely to find resistance around the 1.42 mark.

The kiwi advanced to a 2-day high of 82.77 versus the yen and an 8-1/2-month high of 0.7387 against the greenback, from Tuesday's closing values of 82.34 and 0.7349, respectively. On the upside, 84.00 and 0.75 are likely seen as the next resistance levels for the kiwi against the yen and the greenback, respectively.

Reversing from an early session's low of 1.0800 against the aussie, the kiwi edged up to 1.0746. Further uptrend may take the kiwi to a resistance around the 1.06 region.

Looking ahead, Canada manufacturing sales for May and U.S. building permits and housing starts for June are set for release in the New York session.

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