The Australian dollar fell against the greenback on Tuesday following positive comments from a Federal Reserve official in regard to U.S. wage growth and inflation.

At the Asian market open 07:00 (AEST), the Australian dollar was trading at 75.94 U.S. cents, down from 76.11 U.S. cents on Monday.

"Inflation is a little lower than what we would like, but we think that if the labor market continues to tighten, wages will gradually pick up and with that, inflation will gradually get back to 2 percent," New York Federal Reserve chief executive officer William C. Dudley said.

"This is actually a pretty good place to be with unemployment at 4.3 percent and inflation at about 1.5 percent."

The comments sparked a rise in the U.S. currency, reinforcing hopes the fed would continue its plans to keep hiking interest rates.

At 09:50 (AEST), the Australian dollar was buying 75.95 U.S. cents.