The Australian dollar is steady in today’s trading a as the market awaits this week’s FOMC meeting from the US Federal reserve.

At 8.42am (GMT) the Aussie dollar was trading at US73.65c, remaining at the same level as Fridays close.

The recent move by the peoples bank of china to devaluate the Yuan has now put into question the timing of an interest rate hike from the Fed with fears a weaker Chinese currency may stoke inflation in the US with consumers and businesses flocking to purchase cheaper imported goods.

OzForex corporate dealer Matt Richardson said the fortunes of the Australian dollar lay with the US Federal Reserve and noted that the Australian dollar was finding support on the back of the uncertainty surrounding the interest rate decision,

 "There is still a 50-50 expectation we will see a rate hike in September, but that probability has decreased since Tuesday last week,"Mr Richardson said. 

Three of Australia’s biggest banks expect headwinds for the Aussie dollar in the nearest future on the back of higher rates in the US as well as the possibility of another devaluation by the Chinese government.

National Australia Bank expects the Australian dollar to finish the year at US70c before trading at a low of around US68c in the first half of 2016.