Market wrap: dollar falling - Westpac

Analysts at Westpac offered a market wrap for the US session.

Key Quotes:

"Global market sentiment: US interest rates and the US dollar fell, giving the AUD and NZD a lift. Oil shed around 3%.

Interest rates: US 10yr treasury yields fell from 1.60% to 1.54%, while the 2yr fell from 0.77% to 0.73%. That was despite the most recent Fed comments from Dudley, Williams, and Fischer, displaying hawkish tones; the fall in oil prices may have been a factor. Market pricing of the Fed funds rate firmed slightly, though, implying around a 25% chance of a rate hike in September, a 65% chance by December, and 100% by August 2017.

Currencies:  The US dollar index reversed course and shed around 0.5%. EUR rose from 1.1275 to 1.1331. USD/JPY fell from 100.92 to 100.21. The weaker US dollar helped the AUD rise from 0.7586 to 0.7640. NZD also rose from 0.7210 to 0.7294. AUD/NZD fell from 1.0525 to 1.0466 – a three-week low."