The Australian share market has closed lower as investors wait on a crucial meeting of the US Federal Reserve.

After climbing as much as 0.5 per cent in early trading on the back of gains in banking stocks, the benchmark S&P/ASX200 index finished Wednesday down 14.1 points, or 0.23 per cent lower, at 6,006.4 points.

The All Ordinaries index was dropped by 18.8 points, or 0.31 per cent, at 6,128.

The Australian dollar dropped as low as 71.73 US cents, up from 71.32 US cents at Tuesday’s close.