The Australian dollar is lower despite getting an initial boost following the release of the US Federal Reserve’s January policy meeting minutes.

At 0700 AEDT on Thursday, the local unit was trading at 78.17 US cents, down from 78.23 cents on Wednesday.

The minutes indicate the Federal Reserve isn’t ready to start raising its interest rate anytime soon, with officials expressing concerns about inflation and lingering problems in the labour market.

After the statement was released, the Australian dollar shot up more than half a US cent, to peak at 78.39 US cents, its highest level since February 10.

Westpac, senior market strategist, Imre Speizer, said many had expected the Federal Open Market Committee to give some indication that it was inclined to rate its interest rate.

“The FOMC minutes were less hawkish than the market had expected,” Speizer said. “Members wanted more evidence of growth and higher inflation. That said, many also felt policy should remain data dependant.”

The Australian dollar lost ground earlier in the overnight session as the US dollar rallied because of worries about the bailout negotiations between Greece and European officials. “The Greece discussions are a persistent source of volatility,” Speizer said. He expects the Australia dollar to trade in a range between 77.40 and 78.30 US cents on Thursday.

The Australian dollar hit a fresh post-float low against the New Zealand dollar of 103.33 New Zealand cents early on Thursday morning.

The Aussie dollar has been losing ground in recent weeks because of expectations that the Reserve Bank of New Zealand is inclined to raise its interest rate, while the Australia’s central bank is looking to reduce its cash rate.

AAP