Dollar Soars on Hawkish Fed, Aussie Under Pressure

The US dollar continued its upward trajectory as the European session unfolded, supported by a slump in bond markets and higher Treasury yields. This move was largely attributed to the recent hawkish Federal Reserve rate hike, which has led to an increase in yield spreads between the US and other countries.

In addition, the AUD/USD suffered one of its worst daily falls in over three months due to strong US data sending Treasury yields sharply higher. With Australian jobs data scheduled for release today, the Aussie is under pressure, already trading near the 70c handle.