At the Asian market open 07:00 (AEST), the local currency was trading at 68.83 U.S. cents, up from 68.76 U.S. cents at the same time Wednesday.
With all eyes on the American central bank's monthly monetary policy meeting overnight, Daily FX analyst Daniel Dubrovsky said "the pro-risk Australian and New Zealand Dollars struggled picking up upside momentum after the markets fully priced in a July Fed rate cut in the aftermath of June's hold."
"There was a general increase in risk appetite, with the S&P 500 rallying as U.S. front-end government bond yields dropped alongside the U.S. Dollar. Yet, a clear message from the central bank signalling an imminent interest rate cut seemed notably absent."
Despite a marginal uptick in the Aussie dollar during the overnight trading session, Dubrovsky added that the gains could be reversed on an upcoming speech from Reserve Bank of Australia Governor Philip Lowe.
"He may continue to underpin the case for near-term rate cuts, sapping the Aussie's appeal from a yield perspective," he added.
At 09:00 (AEST), the Australian dollar was buying 68.90 U.S. cents.
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