With several Asian markets closed and markets focus on Yellen's testimony, overnight markets remained moderately stable. USD/JPY continues to hover at 15-month low of 114.21 hit on Tuesday, while the commodity currencies traded weaker within its previous ranges.

The limelight will be on Fed Chair Janet Yellen's testimony to the House Financial Services Committee throughout the day, as markets have changed their Fed rate expectations over the last couple of weeks. Markets will closely watch Yellen's testimony for further cues on the rate hike in March as they do not expect immediate hike rates amid global growth turmoil; however, they anticipate one rate hike by end of this year. Yellen is likely to emphasize on the growing U.S. economic fundamentals and further provide significant clarity on March meeting.

"Economists think the odds that Yellen heavily promotes a March move are slim," says RBC Capital Markets in a research note.