The Australian dollar has hit a six-week high as traders await the outcome of the two-day US Federal Reserve meeting.

The Fed is discussing putting more stimulus into the American economy, which in the past has put downward pressure on the US dollar.

At 11.30am (AEST), the local unit was trading at US101.78 cents, up from 101.26 cents on Tuesday.

Early on Wednesday, it hit US102.03 cents, its highest level since May 8.

In an economic report this morning ANZ said that a weaker US dollar had benefited "high beta" currencies such as the Australian Dollar while "not-so-dovish" minutes from the Reserve Bank released yesterday also underpinned the Australian dollar.

This article first appeared on SmartCompany.