After 25 long months, the Australian dollar opened above $US 95 cents.

The local currency was trading at $US 95.53 cents this morning. The figure is far higher than Tuesday's close of 94.54 cents.

The local unit traded between $US 95.64 cents and $US 94.43 cents since 5 p.m. AEST yesterday.

The Australia dollar can buy the British pound at $AU 1.6384, the Euro at $AU 1.3852, and the Canadian dollar at $AU 1.0233. It could be exchanged with a unit of the Chinese Yuan for $AU 0.1573 cents, the Hong Kong dollar for $AU 0.1360 cents, and the Japanese Yen for 0.0123 cent.

The New Zealand Kiwi is worth $AU 0.7701 cents. Against the Singapore dollar, the local unit is equivalent to $AU 0.7926 cents.

HiFX senior trader Stuart Ive said, “The major event overnight was the (Fed) in the U.S... Although they haven't changed their current stance for policy, they are leaving the door open to quantitative easing.”

In quantitative easing, the reserve bank buys government bonds as an effort to increase the supply of money in circulation. The U.S. partly used the strategy to fight off the global financial crisis.

The Federal Reserve statement that it is “prepared to provide additional accommodation” to the the US economy sent the US dollar lower. As a result, the price of commodities strengthened.