MArket wrap: greenback in decline again - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar and US interest rates fell for a second consecutive day, with little news to attribute the moves to. Equities had a modest pullback, while oil fell over 2%.

Interest rates: US 10yr treasury yields fell from 1.54% to 1.50% while the 2yr yield fell from 0.71% to 0.68%. Market pricing of the Fed funds rate slipped further, implying around a 20% chance of a rate hike in September, a 45% chance by December, and 100% not until Jan 2018.

Currencies:  The US dollar index fell by around 0.5%. EUR rose from 1.1140 to 1.1190. USD/JPY fell from 101.50 to 101.00. AUD extended its run from 0.7700 to 0.7756 – a 3 ½ month high – before consolidating. NZD also pushed higher, from 0.7220 to 0.7265 – one-month high – before fully retracing. AUD/NZD ranged between 1.0665 and 1.0705."