diff --git a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
index 17be02521dc..ef10ec55423 100644
--- a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
+++ b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_create.py
@@ -88,6 +88,7 @@ def _build_arguments_schema(cls, *args, **kwargs):
             options=["--audiences"],
             arg_group="Properties",
             help="The aud value in the token sent to Azure for getting the user-assigned managed identity token. The value configured in the federated credential and the one in the incoming token must exactly match for Azure to issue the access token.",
+            default=["api://AzureADTokenExchange"],
         )
         _args_schema.issuer = AAZStrArg(
             options=["--issuer"],
diff --git a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_update.py b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_update.py
index 69ddd9f1e89..f0ccfe8b03e 100644
--- a/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_update.py
+++ b/src/azure-cli/azure/cli/command_modules/identity/aaz/latest/identity/federated_credential/_update.py
@@ -90,6 +90,7 @@ def _build_arguments_schema(cls, *args, **kwargs):
             options=["--audiences"],
             arg_group="Properties",
             help="The aud value in the token sent to Azure for getting the user-assigned managed identity token. The value configured in the federated credential and the one in the incoming token must exactly match for Azure to issue the access token.",
+            default=["api://AzureADTokenExchange"],
         )
         _args_schema.issuer = AAZStrArg(
             options=["--issuer"],