Market wrap: a depressed dollar - Westpac

Analysts at Wetpac wraped up the overnight US session noting a depressed dollar.

Key Quotes:

"Global market sentiment: The US dollar and US interest rates remained depressed, still reeling fromFriday’s shockingly weak labour report. Equities and commodities, though, were buoyed by the implied delay to Fed rate hikes, the S&P500 making an 11-month high and within a whisker of the record high.

Interest rates: The US 10yr treasury yield fell from 1.74% to 1.70%, the latter proving tough to breach after being tested several times during the past two months. The 2yr similarly fell from 0.80% to 0.77%. Market pricing for near-term Fed hikes receded slightly further, June now given a zero chance, and September around 45% (from 50%).

Currencies:  The US dollar index (DXY) ranged sideways around a multi-week low. EUR ranged between 1.1340 and 1.1380. USD/JPY slipped from 107.90 to 107.15. AUD was the day’s outperformer, boosted by an absence of easing bias in yesterday’s RBA’s decision. It pushed slightly higher to 0.7464 – a one-month high. NZD tagged along, rising to 0.6982 – also a one-month high. AUD/NZD retraced part off the post-RBA reaction, slipping from 1.0740 to 1.0675."