AUD Weakens Below 0.7150 as Markets Await Fed Rate Decision

The Australian Dollar (AUD) weakened below 0.7150 against the US Dollar (USD) on Wednesday, as markets awaited the Federal Reserve's interest rate decision.

Expectations of a US interest rate hike are supporting the USD and putting pressure on the AUD/USD pair.

Currency strategist Carol Kong at Commonwealth Bank of Australia noted that a 25 basis-point increase is about 90% priced, implying the dollar will receive a modest boost if the Fed increases. However, hawkish remarks from Fed policymakers could lift the USD against the AUD.