Firstly, investors are likely still net long on the USA currency, which indicates they expect the greenback to rise further, and a change in sentiment could support the Aussie, according to Nomura's Australia interest rate strategist Andrew Ticehurst.
The dollar was little changed at 111.995 yen on Wednesday. The advance wasn't enough to take out exporter dollar sales from Tokyo corporates who left their orders over the Golden Week holidays, the trader said.
The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmark lending rate this year, boosting the dollar against the euro and other major currencies. Expectations for a June rate hike increased to a 75.2 percent chance of a rise of at least a quarter-point next month, according to CME's FedWatch tool. Energy stocks slid 0.8% as oil prices headed for heavy losses. A period of digestion seems like the most probable scenario in the immediate term as traders look ahead to the always closely-watched release of United States labor-market statistics on Friday.
"The Fed is communicating its mantra of gradual rate hikes".
Gold hovered near three-week lows on Wednesday as the dollar firmed on expectations of a U.S. interest rate increase in June and the market discounted a surprise win by France's far-right presidential candidate. Shares climbed 0.6 percent.More news: Wisconsin dairy farmers face spoiling market, tight deadline
The Federal Open Market Committee downplayed signs of weakness in the United States economy this year, saying it "views the slowing in growth during the first quarter as likely to be transitory" while inflation was running close to its target and consumption "remained solid". Bullion on Tuesday hit $1,251.37 per ounce, its lowest since April 10.
Apple still managed to top earnings estimates in what has been a strong quarter for USA companies.
New York-based Elliott Advisors wants to restructure the firm - saying it could unlock as much as 50 percent more value in the stock - and dissolve its costly dual-listed structure, with assets transferred to a new company incorporated and listed in Britain. Eastern time. The Dow Jones industrial average lost 52 points, or 0.3 percent, to 20,897. The pair has made session high at 1.0927 and hit lows at 1.0884 levels. Brent crude, used to price Global oils, rose 33 cents to $50.79 a barrel in London.
"Recent pressure on world commodity prices culminated in some precipitous moves overnight ... and from a technical perspective at least, the signs are ominous", said Neil Mellor, senior currency strategist with Bank of New York Mellon in London. WTI crude prices headed lower after jumping above $48 a barrel on Tuesday following the API report that showed United States inventories fell by a more-than-expected 4.16 million barrels at the end of last week. It touched a six-week high on Tuesday but fell back to close 0.4 percent higher. On Nasdaq, a 1.79-to-1 ratio favored decliners. Delphi's stock added $8.56, or 10.9 percent, to $87.01. The yield on the 10-year Treasury note stayed at 2.29 percent.
Oil prices were little changed on Wednesday in a volatile session as the market mulled US government data showing that while there were signs a crude glut may be receding, crude inventories remain large with gasoline demand weak.