Forex Focus - The Australian dollar was steady against its U.S. counterpart on Wednesday, as investors were cautious ahead of a statement by the Federal Reserve amid hopes the central bank will announce further stimulus measures to bolster the economy.
AUD/USD hit 1.0197 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0196, inching up 0.06%.
The pair was likely to find support at 1.0109, the low of May 7 and resistance at 1.0277, the high of May 4.
The Fed was to conclude its two-day policy meeting later Wednesday, amid growing expectations that policymakers may announce a third round of monetary stimulus after a recent string of weak economic data.
Market sentiment also strengthened on reports Greek party leaders may be close to forming a coalition government, which would allow Athens to resume negotiations with creditors on its international bailout deal.
Meanwhile, the yield on Spanish 10-year bonds eased back to just below the critical 7% threshold, after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
In Australia, a report by the Conference Board showed that its leading index fell 1.4% in April, following a 0.2% decline the previous month.
A separate report showed that the Melbourne Institute’s leading index for Australia rose 0.5% in April, after a 0.5% gain the previous month.
Elsewhere, the Aussie was also steady against the euro with EUR/AUD inching down 0.06%, to hit 1.2444.
Later Wednesday, the Fed was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.