• AUD/USD on the defensive in Asia after closing 0.85% lower on Thursday

• Hit hard by rising Fed rate hike expectations and sticky U.S. PPI

• Markets price in a 70% probability of Fed hike on Sep 16, up from 60% Thu

• Surging global bond yields undermine AUD; U.S. 10-yr up 12 bps, nears 5%

• U.S. crude closes 6.7% higher as Middle East war escalates, risk mood sours

• U.S. Aug CPI Fri key for Fed; hotter-than-expected reading will weigh on AUD

• Support at 21-DMA at 0.7155, then 0.7117-22; resistance 0.7200-05, 0.7220

• Thursday range 0.7156-0.7223
AUD:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)