Market wrap: dollar up 0.6% - Westpac

Analysts at Westpac offered a market wrap of the US session where the US dollar index rose by 0.6.%

Key Quotes:

"Global market sentiment: US bond yields, the US dollar, and equities all rose, the latter to a fresh record high. The Fedspeak was upbeat.

Interest rates: US 10yr yields rose from 2.32% to 2.36, 2yr yields from 1.47% to 1.50%. Fed fund futures yields firmed slightly to price the chance of a December rate hike at 84% - a high for that meeting.

Currencies: The US dollar index is up 0.6% on the day, to a two-month high. EUR fell from 1.1780 to 1.1700. USD/GBP ranged between 112.40 and 112.85. AUD extended its earlier fall, which was triggered by disappointing retail sales data, from 0.7840 to 0.7792. NZD fell from 0.7160 to 0.7113 – a four-month low. AUD/NZD retraced some of its earlier loss, rising from 1.0924 to 1.0960.

Economic Wrap

US factory orders rose 1.2% in August (vs 1.0% expected), less affected by the hurricanes than expected. Durable goods orders for August were finalised at +2.0% (vs 1.7% expected).

Fed speakers included Williams, who said one more hike this year and another three next year are appropriate given the economy’s strength, and Harker, who said much the same thing."