Market wrap: US dollar weaker - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets took the Italian referendum “no” vote in their stride and adopted a mainly risk-seeking posture overnight. US and European equities are higher, as are commodities, and the safe-haven US dollar is weaker.

Interest rates: US 10yr treasury yields initially rose from 2.34% to 2.45%, but retraced during the NY session to 2.36%.The 2yr yield is slightly higher at 1.12%, and Fed funds futures continue to imply a 100% chance of a rate hike in December, with two more rate hikes priced in for 2017. Fedspeak from Evans and Dudley was consistent with signals to date pointing to a rate hike on 14 Dec.

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."