Japanese machinery orders fell

Japan's core machinery orders fell more than expected in February from the previous month, casting some doubt on the outlook for capital spending.

Core private-sector machinery orders, a key gauge of corporate capital spending, fell 5.2 % in February from January, government data showed on Wednesday, below a consensus forecast for a 0.2 % fall. The euro rose as high as 160.16 yen, its highest since the single currency's launch in 1999.

EURJPY traded between 159.58 and 160.16.

AUD in 16?? years high

The Australian dollar jumped to a fresh 16- and-a-half-year high against a broadly weaker U.S. dollar on Wednesday, buoyed by speculation interest rates here will rise later this year and by firmer base metals prices. The local currency touched USD 0.8267 during New York session, its highest level since October 1990, also helped by gains on the cross against the Japanese currency as investors continued to borrow the yen cheaply to invest in high-yielding currencies like the Aussie.

AUDUSD traded between 82.35 and 82.63.

FED??™s Plosser on U.S economy

Philadelphia Federal Reserve Bank President Charles Plosser said on Tuesday that the U.S. economy is not as strong as the Fed had expected two months ago and prices remained higher. Personal consumption and employment were strong but business investment was weaker, Plosser said in response to a question after delivering a speech to business and economic students at the University of Delaware.

China declines G7 invitation

China has declined an invitation to take part in talks on the global economy at a meeting of G7 nations this weekend because it has other "domestic policy" priorities, a German official said on Tuesday.

GBP rose on new tax proposal

British-based multinationals would be allowed to repatriate billions of pounds of foreign profits tax-free to the UK, under proposals being drawn up by the Treasury to improve the competitiveness of the British tax system. The Treasury will issue a consultation paper this spring to discuss the option of bringing the British system into line with mainland Europe, which does not tax foreign dividends. The potential reforms ??“ which are not expected to result in an overall tax cut for companies ??“ are likely to be accompanied by stringent anti-avoidance measures and potential new restrictions on the deductibility of interest costs.

GBPUSD traded between 197.11 and 197.80.