The U.S. dollar declined against its major counterparts on Wednesday, after U.S. President Donald Trump outlined policies on trade, immigration, infrastructure and national security in his first State of the Union address.

Trump was optimistic over strength of the U.S. economy and tax reduction measures and he urged Congress to pass a $1.5 trillion infrastructure spending plan.

Trump said that America has "turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs and our nation's wealth."

President Trump reiterated his offer of a path to citizenship to 1.8 million undocumented immigrants and made case to scale back legal immigration and build border wall.

The Federal Reserve's latest two-day monetary policy meeting concludes later today, with economists widely expecting the benchmark rate to remain unchanged at a range between 1.25-1.50 percent.

Some economists expect the central bank to raise its economic assessment at Fed Chair Janet Yellen's final meeting.

The greenback weakened to a 6-day low of 0.9308 against the franc, from a high of 0.9359 hit at 9:30 pm ET. If the greenback declines further, it may target support around the 0.92 area.

Reversing from an early high of 109.09 against the yen, the greenback edged down to 108.60. The next possible support for the greenback is seen around the 106.00 level.

Data from the Cabinet Office showed that Japan's consumer confidence held steady at the start of the year.

The seasonally adjusted consumer confidence index came in at 44.7 in January, the same reading as in December.

The greenback hit a 5-day low of 1.4213 against the pound, following a high of 1.4136 hit at 9:30 pm ET. On the downside, 1.45 is possibly seen as the next support level for the greenback.

Having advanced to 1.2397 against the euro at 6:30 pm ET, the greenback reversed direction and dropped to a 5-day low of 1.2463. The greenback is seen finding support around the 1.26 level.

Data from Destatis showed that Germany's retail sales declined unexpectedly in December.

Retail sales fell 1.9 percent year-on-year in December, in contrast to November's 4.3 percent increase.

The greenback dropped to a 4-1/2-month low of 1.2272 against the loonie and a weekly low of 0.7403 against the kiwi, from its early highs of 1.2348 and 0.7327, respectively. Continuation of the greenback's downtrend may see it challenging support around 1.20 against the loonie and 0.76 against the kiwi.

The greenback eased back to 0.8101 against the aussie, reversing from an early high of 0.8046. The greenback is poised to challenge support around the 0.82 area.

Data from the Australian Bureau of Statistics showed that Australia's consumer prices climbed 0.6 percent on quarter in the fourth quarter of 2017.

That was shy of expectations for 0.7 percent, although it was unchanged from the three months prior.

Looking ahead, German jobless rate and Swiss economic sentiment index for January, Eurozone jobless rate for December and advanced consumer prices for January are due in the European session.

At 8:15 am ET, ADP private payrolls data for January is due.

In the New York session, Canada GDP data for November and industrial product price index for December, as well as U.S. pending home sales for the same month are set for release.

At 2:00 pm ET, the Fed announces decision on interest rates. Economists widely expect the benchmark rate to remain unchanged at a range between 1.25-1.50 percent.

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