"Risk sentiment seems to have improved overnight on the back of the strong Chinesedata," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. The New Zealand dollar fell after data showed that annual inflation slowed in thefirst quarter, which raised the odds of an interest rate cut in the coming months. Other data on Wednesday showed that the U.S. trade deficit fell to an eight-month lowin February as imports from China plunged, temporarily providing a boost to PresidentDonald Trump's "America First" agenda and economic growth in the first quarter.