Market wrap: US dollar elevated, but ...

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar remained elevated but US interest rates had second thoughts about the chances of rate hikes. Equities also retraced some of Friday’s declines, the S&P500 up 0.6%.

Interest rates: US 10yr treasury yields fell from 1.62% to 1.56% - back to where they were prior to the Jackson Hole Fed comments. The 2yr yield fell from 0.84% to 0.81%. Market pricing of the Fed funds rate fell, implying around a 35% chance of a rate hike in September, an 80% chance by December, and 100% by April 2017.

Currencies:  The US dollar index is unchanged. EUR initially fell from 1.1200 to 1.1158 but rebounded to 1.1192. USD/JPY tried to probe higher, to 102.39, but retraced to 101.91. AUD ground higher from 0.7540 to 0.7582. NZD simila."