Dollar slightly lower after FOMC meeting

THE Australian dollar was slightly lower after the US central bank's policy meeting did not announce any new economic stimulus measures.

THE Australian dollar was slightly lower after the US central bank's policy meeting did not announce any new economic stimulus measures.

At 7.30am (AEDT) today, the Australian dollar was trading at 103.32 US cents, down from 103.64 cents yesterday.

Since 5pm (AEDT) yesterday, the local unit traded between 102.89 US cents and 104.28 cents.

Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar had not moved much since the end of Wednesday's local session.

"I would characterise the last 18 hours as one of relative stability (in currency markets) after a fairly sharp sell-off early in the week," he said from Auckland.

"Risk sentiment rose overnight and the main reason for that is we have more clarity on what might happen in Greece.

"We know that the referendum (on accepting the bailout package) now has the backing of the cabinet and they are going to have a confidence vote on Friday.

"So, it's good to have clarity and that's the reason for the stability in currency markets."

Mr Speizer said the result of the US Federal Reserve's Federal Open Market Committee (FOMC) meeting pushed down the Australian dollar.

"The FOMC did not deliver anything in terms of economic stimulus. The market thought they might deliver a little bit," he said.

Mr Speizer said the main focus for markets on tonight (AEDT) will be the European Central Bank interest rate decision.

Ahead of that, during the local session today, the Australian Bureau of Statistics will release retail sales figures for September.

Mr Speizer said he expected the Australian dollar to trade in a range between 102.70 US cents and 104 cent today.