AUD Slips as Yields Rise, Markets Eye RBA Decision

The AUD/USD currency pair has slipped to around 0.7010 in early Asian trade as the US dollar firmed on higher US Treasury yields and expectations of further Federal Reserve tightening.

US Treasury yields have risen, pushing toward 4.3%, while markets are pricing a 65.9% probability of an October hike, up from 57.6% a week earlier and 9.4% a month earlier.

The focus now shifts to the Reserve Bank of Australia's meeting on Tuesday, where a rate increase by 25 bps is expected, taking the Official Cash Rate to 4.60%, last seen in November 2011.