Aust stocks close flat

Local market little changed as investors wait to hear if Fed will taper tomorrow.

The Australian stock market has closed flat as investors position for the United States Federal Reserve's decision tomorrow morning about whether it will reduce its $US85 billion per month bond-buying program.

At 1615 AEDT, the the benchmark S&P/ASX200 index inched down 0.14% to 1,096.1 points, while the the broader All Ordinaries index edged down 0.13% to 5,099.3 points.

IG analyst Chris Weston said if the outcome of the Federal Open Markets Committee meeting is to leave the stimulus program unchanged, it will benefit the US market more directly.

"A look at positions opened today from clients on the ASX 200 shows an exact split of long and short contracts," Mr Weston said.

"Perhaps the positioning around the Australian market is a fair reflection of the fact that predicting price action in any asset class around tonight's FOMC meeting is tough and thus we are seeing no clear directional bias.

"There has been no panic at all, with good, orderly, two-way business from clients."

Mr Weston said the local focus today has largely been on Reserve Bank of Australia Governor Glenn Stevens, who repeated concerns about the high exchange rate to a parliamentary economics committee.

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