Market wrap: US dollar on the back-foot - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US payrolls data was slightly disappointing overall, helping US interest rates and the US dollar decline. AUD/USD and NZD/USD did well as a result.

Interest rates: US 10yr treasury yields fell from 2.44% to 2.37%, and the 2yr fell from 1.15% to 1.10%, with most of the declines occurring after the payrolls release. The data wasn’t bad enough to cause markets to back away from a Dec Fed hike view though, Fed funds futures continuing to imply a 100% chance of a rate hike in December, with two more rate hikes priced in for 2017.

Currencies:  The US dollar index is 0.3% lower. EUR initially fell from 1.0690 to 1.0630 before rebounding to 1.0685 post-payrolls. Austria voted for a Green Party backed independent president, beating the populist candidate by a decent margin. Markets now await the Italian referendum result. USD/JPY fell from 114.10 to 113.33. AUD rose from 0.7401 to 0.7469. NZD rose from 0.7086 to 0.7149. AUD/NZD fell from 1.0475 to 1.0420."