Market wrap: dollar rebounded - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar bounced off a six-week low, the catalyst not entirely obvious (US data, risk aversion during the Asian session?) Oil bounced around 4% off a three-month low.

Interest rates: US interest rates were mainly rangebound. 10yr treasury yields fluctuated between 1.53% and 1.57%, while the 2yr ranged between 0.67% and 0.69%.Market pricing of the Fed funds rate firmed a touch, implying around a 20% chance of a rate hike in September, a 45% chance by December, and 100% not until Jun 2018. FOMC (non-voting) dove Evans said one rate hike this year may be appropriate but did not expect to reach the 2% inflation target until 2018.

Currencies:  The US dollar index bounced off a six-week low and gained around 0.5% overnight. EUR fell from 1.1215 to 1.1141. USD/JPY consolidated a two-week decline, ranging between 101.00 and 101.57. AUD ground slightly lower from 0.7600 to 0.7568. Underperformer NZD continued to pull back from its recent 0.7257 high, falling to 0.7141. AUD/NZD rose from 1.0550 to 1.0620."