The US dollar is on the defensive, shares have edged lower, and gold has scaled new heights as global markets count down to an anticipated rate cut by the Federal Reserve and wait on potential signals of future easing.

The euro surged to a four-year high against the greenback in the prior session on the Fed easing bets, while oil remained firm following Ukrainian drone attacks on Russian refineries and ports.

The Fed is expected to cut its benchmark interest rate by a quarter of a percentage point to the 4.00 per cent-4.25 per cent range at the end of its monetary policy meeting later on Wednesday, US time (early Thursday AEST).

The main focus beyond the rate decision will be on chair Jerome Powell's comments on the outlook for US monetary policy.

"Markets are effectively daring the Fe

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