$A follows US stocks higher

(Australian Associated Press)

The Australian dollar has followed US stocks higher as as investors stayed away from making major bets ahead of the Federal Reserve’s policy meeting.

At 0635 AEST on Wednesday, the Australian dollar was worth 80.09 US cents, up from 79.81 US cents on Tuesday.

Westpac’s Imre Speizer says there was scant news to drive markets overnight, and there’s also caution ahead of the US Federal Reserve policy decision, which is expected early Thursday morning, Australian time.

“The FOMC interest rate decision is widely expected to be on hold. It has been well-telegraphed that the specific start date of the balance sheet normalisation plan will be announced at this meeting,” he said.

One Australian dollar buys:

* 80.09 US cents, from 79.81 on Tuesday

* 89.40 Japanese yen, from 89.16 yen

* 66.78 euro cents, from 66.54 euro cents

(*Currency closes taken at 1700 AEST previous local session)

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