MArket wrap: all about nonfarm payrolls - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: most markets were well contained, awaiting Friday’s US payrolls report. Oil was a standout, falling around 3% on higher reported inventories.

Interest rates: US 10yr treasury yields initially fell from 1.58% to 1.55% but retraced, while 2yr yields fell from 0.81% to 0.78% and retraced to 1.80%. Market pricing of the Fed funds rate was little changed, implying around a 35% chance of a rate hike in September, an 80% chance by December, and 100% by April 2017.

Currencies:  The US dollar index is little changed on the day but did probe higher during the London morning. EUR did a roundtrip from 1.1160 to 1.1123 and back. USD/JPY ground higher to 103.53 – a one-month high. AUD made a fresh one-month low at 0.7490 but rebounded in NY to the 0.7520 area. Outperformer NZD rose from 0.7240 to 0.7266. AUD/NZD extended its multi-week decline from 1.0380 to 1.0359 – the lowest level since 11 July."