Investing.com - The Australian and New Zealand dollars moved higher against their U.S. counterpart on Wednesday, as sentiment on the greenback became more fragile ahead of the Federal Reserve’s highly-anticipated policy decision due later in the day.
AUD/USD rose 0.28% to 0.7581.
Investors were awaiting the outcome of the Fed’s two-day policy meeting on Wednesday, with a rate hike almost fully priced in by markets.
Rate hike expectations were cemented by U.S. inflation data on Tuesday. The Department of Labor said the producer price index rose 0.3% last month after rising 0.6% in January.
NZD/USD gained 0.27% to trade at 0.6938.
Earlier Wednesday, Statistics New Zealand said that the current account deficit narrowed to NZ$2.34 billion in the fourth quarter of 2016 from NZ$4.89 billion in the three months to September.
Analysts had expected the current account deficit to narrow to just NZ$2.54 billion in the last quarter.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% at 101.41.