Market wrap: US dollar and rates under pressure - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar and US interest rates remained under downward pressure overnight, and equities did well (S&P500 +0.8% to a record high), helping AUD/USD and NZD/USD rise.

Interest rates: US 10yr treasury yields fell from 2.40% to 2.34%, and 2yr yields fell from 1.12% to 1.10%. Fed funds futures continue to imply a 100% chance of a rate hike on 14 December, with two more rate hikes priced in for 2017.

Currencies:  The US dollar index is 0.3% lower. EUR rose from 1.0710 to 1.0768. USD/JPY fell from 114.39 to 113.44. AUD recouped its post-GDP loss, rising from 0.7417 to 0.7483. Iron ore extended its rally by another 3.2%, taking it to a two-year high at $82. NZD rose from 0.7120 to 0.7167. AUD/NZD eked a narrow sideways range of 1.0420-1.0455."