The Australian dollar is hovering above 93 US cents ahead of Friday night’s update from the US Federal Reserve.

At 1200 AEST on Friday, the local currency was trading at 93.07 US cents, up from 92.68 cents on Thursday.

It’s a quiet day for financial markets ahead of the Fed’s annual monetary policy meeting in Jackson Hole, Wyoming.

Federal Reserve chair Janet Yellen will deliver a speech after the meeting, with investors keen for any guidance on when the central bank will begin hiking interest rates.

“A lack of major economic data from the region over the session ahead is likely to leave the majors treading water,” FXCM market analyst David de Ferranti said.

“Traders may also be hesitant to drive the US dollar higher ahead of the Jackson Hole Symposium.”

The possibility of Dr Yellen making cautious remarks about the labour market poses a threat to the recent strength of the US dollar, he said.

“A reiteration of strong concerns over persistent weakness in wage growth and underemployment would reinforce the prospect that rates will remain at record lows over the near-term, which in turn is a negative for the US dollar,” Mr de Ferranti said.

Meanwhile, Australian bond futures prices were lower.

At 1200 AEST on Friday, the September 2014 10-year bond futures contract was trading at 96.525 (implying a yield of 3.475 per cent), down from 96.530 (3.470 per cent) on Thursday.

The September 2014 three-year bond futures contract was at 97.300 (2.700 per cent), down from 97.310 (2.690 per cent).