U.S. Market wrap: DXY picks up 0.7% - Westpac

Analysts at Westpac offered a Market Wrap for the U.S. session.

Key Quotes:

"Global market sentiment: Markets behaved in slightly risk-averse fashion overnight. The S&P500 is down 0.2%, Brent crude is down 1.2%, and US interest rates are slightly lower. Safe-haven US dollar rose against all but the NZD.

Interest rates: The US 10yr treasury yield broke down, the long-standing 1.70% support level finally giving way to 1.66%. The 2yr eked a slightly lower sideways range of 0.76% to 0.78%. Market pricing for near-term Fed hikes receded slightly further: June remains a zero chance, while September is around 40%.

Currencies:  The US dollar index (DXY) gained around 0.7%. EUR fell from 1.1410 to 1.1306. USD/JPY rebounded off a one-month low of 106.26 to 106.85. AUD fell from 0.7480 to 0.7421. NZD was the day’s outperformer by some margin after the RBNZ decision ignited a wave of fresh buying. It extended gains slightly overnight to 0.7148 (a 12-month high), for a total of +1.4c post-RBNZ. AUD/NZD accordingly slipped further to 1.0410 – the lowest since April 2015."