The Australian dollar strengthened against most major counterparts in European deals on Wednesday amid risk appetite, as the Bank of Japan tweaked monetary policy, abandoning target to expand the monetary base and instead set a "yield curve control" to stoke inflation.

The yield on 10-year Japanese government bonds briefly rose above zero for the first time since March as the central bank introduced a zero interest-rate target for 10-year government bonds in its fight against deflation.

Investors await the FOMC rate decision later today, although the Federal Reserve is widely expected to leave its benchmark overnight interest rate unchanged following its two-day meeting.

Market participants remain focused on the accompanying policy statement and Fed Chair Janet Yellen's press conference for signs of change in tone about the economy or future rate hikes.

In other economic news, the latest survey from Westpac Bank showed that Australia's economy looks to be stagnant in the near term, with a flat leading index reading.

That's down from the upwardly revised 0.08 percent gain in July.

The currency has been trading higher against its major opponents, except the Japanese yen, in the Asian session.

The aussie advanced to 1.0372 against the kiwi, its strongest since September 7, from a low of 1.0311 hit at 9:15 pm ET. Continuation of the aussie's uptrend may see it challenging resistance around the 1.05 mark.

Data from Statistics New Zealand showed that New Zealand's net migration increased in August from a year ago, after falling for the first time in twenty-three months in July.

The country recorded a net migration of 69,100 in the year to August 31, equaling the previous record set in June.

The aussie climbed to near 2-week highs of 1.4666 against the euro and 0.7602 against the greenback, off its early lows of 1.4781 and 0.7534, respectively. The aussie is seen finding resistance around 1.44 against the euro and 0.79 against the greenback.

The aussie bounced off to 1.0000 against the loonie, from an early low of 0.9945. If the aussie extends rise, 1.05 is possibly seen as its next resistance level.

Looking ahead, U.S. weekly crude oil inventories data is slated for release shortly.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy. The Fed is expected to hold its Federal Funds rate in the range of 0.25-0.50 percent.

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