Markey wrap: US dollar lower, sticks fresh highs - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

US dollar index back below 101.00, retreats ahead of FOMC meeting

"Global market sentiment: US interest rates initially rose amid higher commodity prices (oil made two-year highs on promised producer cuts) and Wednesday’s looming FOMC meeting. The S&P500 made a fresh record high before correcting, and the US dollar is lower.

Interest rates: US 10yr treasury yields rose to 2.53% - a two-year high – during the London morning but retreated to 2.48% in NY. 2yr yields rose from 1.14% to 1.16% before slipping to 1.13%. Fed funds futures continued to imply a 100% chance of a rate hike on 14 December, and two more rate hikes priced in for 2017.

Currencies:  The US dollar index fell by around 0.6%. EUR rose from 1.0560 to 1.0652. USD/JPY rose to 116.12 – a 10-month high – before correcting to 114.85, the safe-haven yen the worst performer on the day. AUD rose from 0.7450 to 0.7504. NZD rose from 0.7140 to 0.7208. AUD/NZD fell from 1.0460 to 1.0408 despite iron ore rising 2.3% to a two-year high."