The Australian dollar is weaker as the US Federal Reserve begins its two-day meeting on monetary policy.

At 7am (AEDT), the local currency was trading at US76.18c, down from US76.29c on Tuesday.

The US dollar rose against a range of currencies overnight as the Fed’s Federal Open Market Committee began its key meeting on interest rates.

Traders are waiting for Thursday morning’s communique to see if Fed policymakers drop the word “patience” in regards to a possible rate rise.

Weaker commodity prices, in light of a firmer greenback, is also weighing on the Australian dollar.

The local unit weakened on Tuesday after the minutes of the Reserve Bank of Australia’s March meeting convinced traders a near-term rate cut was more likely.

Source : MarketsSpectator