AUD Slides as Fed Hike Expectations Weigh on Australian Dollar

The Australian Dollar (AUD) slipped to near 0.7120 in Wednesday's Asian session as expectations for a U.S. interest rate hike supported the USD.

Futures imply a 92.4% probability of a 25 bp Fed hike and a 78% chance of an RBA move to 4.60% at its next meeting, according to the CME FedWatch tool.

Aussie 10-year yields jumped 8 bp to 5.41% amid a broader global bond sell-off, with analysts at Societe Generale noting that Australian markets have been stretched since yields crossed the 4.90% level last week.