Market wrap: FOMC jitters and mixed sentiment, AUD.USD nudged higher - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Further slippage in the US dollar plus new record highs in US equity indices helped the AUD and NZD nudge higher. Markets expect the long awaited Fed rate hike to be executed tonight.

Interest rates: US 10yr treasury yields eked a 2.44%-2.49% range, while 2yr yields rose from 1.14% to 1.17%. 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 weakened slightly further during the NY session before recovering over the last hour.  EUR rose from 1.0630 to 1.0667 before retracing back to 1.0620. The safe-haven yen again underperformed, USD/JPY stuck between 115.00 and 115.40. AUD rose from 0.7480 to 0.7523 – a one-month high -before retracing to 0.7500. NZD rose from 0.7180 to 0.7232 – a one-month high – before retracing to 0.7200. AUD/NZD extended its grind lower to 1.0384."