Market wrap: US dollar in consolidation - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US interest rates rose further, helped by a further rise in oil prices (+18% since OPEC agreement) and strong economic data. The US dollar remained in consolidation mode though.

Interest rates: US 10yr treasury yields rose from 2.38% to 2.49% - an 18-month high. The 2yr yield rose from 1.12% to 1.16%. Fed funds futures continued 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, despite the rise in interest rates. Perhaps the Fed’s Kaplan had some influence, warning the stronger USD should be taken into account in setting policy. EUR rose from 1.0600 to 1.0640. USD/JPY rose from 113.95 to 114.72. AUD ranged between 0.7371 and 0.7420. NZD fell from 0.7105 to 0.7048. AUD/NZD rose from 1.0420 to 1.0490."