AUD Tumbles as Fed Hikes Rates, Job Data and Trade Talks in Focus

The AUD/USD pair has slipped to around 0.7120 in early Asian trade as the US dollar firmness following the Federal Reserve's rate hike takes center stage.

The Fed's decision to raise rates by a quarter point and indicate further tightening has driven up the probability of another hike in October, now sitting at nearly 56.5% according to the CME FedWatch tool.

Australia's labor data on Thursday is also being closely watched, with forecasts suggesting the jobless rate will remain steady at 4.5% and employment increasing by 20,000.

The upcoming meeting between US President Donald Trump and Chinese President Xi Jinping in Washington to discuss a potential tariff truce adds another layer of uncertainty for traders.