AUD/USD is struggling to regain the 0.6500 level with risk appetite subdued

• Ongoing geopolitical tensions are hurting risk appetite and limiting Aussie's upside attempts.
• Recent data from China cast doubts about the property sector's recovery.
• Later today, the Fed's monetary policy decision will set the US Dollar's direction.
  

The Australian Dollar is paring some of Tuesday's losses, favoured by a mildly weaker US Dollar on Wednesday. The pair, however, remains unable to consolidate above 0.6500 with investors cautious amid geopolitical tensions ahead of the US Fed monetary policy decision.

The Israel-Iran war reaches its sixth day with Tel Aviv pounding the Islamic Republic tirelessly and the US threatening to get involved after President Trump demanded the unconditional surrender of Tehran´s authorities.

Concerns about a widespread regional war and its potential impact on commodity prices and on global economic growth are keeping the sentiment-linked AUD on its back foot.

News from China is failing to provide any significant support, either. Data released earlier this week showed that prices of new properties in the country's main capitals fell 0.2% in May. Prices of second-hand homes declined 0.5% and real estate investment declined beyond 10%, putting into question the property sector's recovery and casting doubts on China's economic outlook.

The highlight today is the Federal Reserve's monetary policy decision, with particular interest in the economic and interest rate projections, for further clues about the bank's easing calendar. These data and Chairman Powell's comments are likely to define the US Dollar's near-term direction.