AUD/USD Edges Higher as Hawkish Rate Hike Prospects Rise

The Australian Dollar (AUD) is trading marginally higher against the US Dollar (USD), but the overall outlook remains uncertain. Surging oil prices have revived hawkish Federal Reserve interest rate prospects, causing investors to become risk-averse.

US Treasury yields have reached their highest level in over 18 months, with the 10-year yield trading at around 4.70%. This has strengthened the US Dollar and dampened investors' appetite for risky assets.

The odds of an interest rate hike by the Fed next week stand at 33.7%, significantly higher than last week's 11.8%.