THE Australian dollar has largely held its ground against a global wave of negativity stemming from Cyprus' rejection of a bank deposit levy. At 1700 AEDT on Wednesday, the currency was trading at 103.79 US cents, down slightly from 103.80 cents on Tuesday. CMC markets foreign exchange dealer Tim Waterer said global equity and risk-sensitive currencies suffered overnight on Tuesday and on Wednesday after the Cypriot government rejected a plan to levy bank deposits. The proposal would see up to 10 per cent taken from bank deposits as part of a euro zone bailout package aimed at stabilising the country's banking system. "Obviously the situation in Cyprus is keeping a lid on risk assets and that is impacting on the Australian dollar," he said. But Mr Waterer said the Australian dollar's performance had been aided by a recent rise in the price of gold, which has pushed back above $US1600 an ounce. "The Australian dollar is a commodity currency and it can have a correlation with some notable commodities, such as gold," he said. Mr Waterer said traders were also hesitant to move the currency in one direction or another ahead of the the end of the US Federal Reserve's March meeting overnight on Wednesday. While the Fed is highly unlikely to change interest rate settings, Mr Waterer said the Australian dollar would likely push above 104 US cents overnight if the central bank reiterated its commitment to its stimulus measures. But he said the currency could fall back towards 103 US cents if the Fed emphasised the improvements in the US economy and put the future of the stimulus program in doubt.