Both the Australian and New Zealand Dollars edged up on Wednesday as worries over U.S. interest rates waned sufficiently to allow global risk appetites to rally.

The Australian Dollar rose 0.1% to $0.7212, moving away from the recent low of $0.7130. In order to bring an end to the impasse seen over the last few weeks, there needs to be a break above $0.7276 resistance, Reuters reports.

The New Zealand Dollar moved up to $0.6790, following last week’s dip of $0.6733. Stiff resistance is prevalent at $0.6795 and $0.6835, with key support at $0.6702.

There was a rally in equity markets and the greenback fell to its weakest since the middle of November on Wednesday on comments from Federal Reserve Chair Jerome Powell that it could take months to run down the $9 trillion balance sheet. Although markets have priced in an initial rate hike in March, only three increases are predicted for 2022.

"We think the market's reaction function is asymmetric," according to a report by TD Securities strategists. "That is, with a hawkish Fed well-priced, a softer CPI read could do more to tactically undermine the USD and support risk."

The Dollar index – measuring the currency against six major rivals – fell to 95.543 in Asian trading, the lowest seen since 18 November. However, against the Yen, the greenback recovered to 115.340, away from Monday’s one-week low of 115.045.

Elsewhere the Chinese Yuan rallied on Wednesday to a 2022 high against the Dollar. The onshore Yuan market opened at 6.3690 per Dollar, reaching a high of 6.3633, the strongest since 31 December. The spot rate stood at 6.3653 around midday, Reuters reports.

In addition, the Pound edged up to $1.3645 for the first time since 4 November, whereas the Euro was trading close to the top of its range seen over the past couple of months at $1.13755. A rise over $1.1387 would take the currency to its highest since November.