The Australian dollar is slightly higher against its US counterpart as the greenback remains steady ahead of the Federal Reserve’s interest rate decision.

At 0635 AEDT on Tuesday, the Australian dollar was worth 75.77 US cents, up from 75.71 US cents on Monday.

There is widespread expectation that Fed’s policymakers will decide to raise its interest rate when they meet on Tuesday and Wednesday, US time.

A rate lift boost the US dollar as it enhances the appeal of US assets.

The US dollar index was marginally higher, up 0.1 per cent, against a basket of currencies, while the local currency ranged between 75.65 and 75.92 US cents overnight.

The local currency is also higher against the yen and the euro.

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