Investing.com - The dollar slipped lower against the yen on Wednesday, while the Australian and New Zealand dollar strengthened after robust Chinese trade data allayed fears over a slowdown in the world’s second largest economy. USD/JPY slipped 0.15% to 102.46, holding above the lows of 102.06 struck on Tuesday. The dollar remained supported after Federal Reserve Chairwoman Janet Yellen confirmed Tuesday that the U.S. central bank is on track to reduce its stimulus program. In her first Congressional testimony since her appointment as Fed Chair, Ms. Yellen told the House Financial Services Committee that the central bank would continue to gradually reduce the pace of its asset purchase program. The euro was almost unchanged against the dollar, with EUR/USD edging up 0.04% to 1.3643. The pound inched higher against the dollar, with GBP/USD easing up 0.09% to 1.6467. Investors were awaiting the release of the Bank of England’s quarterly inflation report later in the session, amid expectations that the bank would update its forward guidance policy. The dollar slipped against the Swiss franc, with USD/CHF dipping 0.06% to 0.8976. Elsewhere, the Australian dollar rose to one-month highs, with AUD/USD rising 0.17% to 0.9051. The Aussie’s gains came after data released on Wednesday showed that Chinese exports jumped 10.6% in January from a year earlier, far outstripping expectations for 2% gain, while imports jumped 10% and the trade surplus widened. China is Australia’s largest export destination. The New Zealand dollar also rose to one-month highs, with NZD/USD climbing 0.43% to 0.8355. The Canadian dollar pushed higher against the U.S. dollar, with USD/CAD down 0.17% to 1.0987. The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 80.65.

Source