Market Wrap: U.S. jobs dissapointing again - Westpac

Analysts at Westpac offered market wrap for the end of week U.S. session.

Key Quotes:

"Global market sentiment: The eagerly awaited US payrolls report was a mild disappointment and caused predictable knee-jerk moves: US dollar and interest rates lower, equities higher. However these were later reversed as markets considered the data was no barrier to a September Fed hike.

Interest rates: US 10yr treasury yields initially fell in response to the US payrolls report, from 1.58% to 1.54%, but rose to 1.62% a few hours later and closed at 1.60%. The 2yr yield similarly fell from 0.79% to 0.74% before closing unchanged at 0.79%. Market pricing of the Fed funds rate was little changed, implying around a 30% chance of a rate hike in September, a 75% chance by December, and 100% by April 2017.

Currencies:  The US dollar index is modestly higher. EUR initially bounced from 1.1190 to 1.1252 on the US payrolls report but later fell to 1.1151. USD/JPY eked a 103.60 to 102.80 to 104.32 path. AUD spiked to 0.7612 on payrolls, retraced to 0.7540, and is now at 0.7575. NZD similarly spiked to 0.7360, retraced to 0.7269, and is currently at 0.7291. AUD/NZD rose from 1.0340 (two-month low) to 1.0380."