Market wrap: US dollar index up 0.1% on the US day - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets were contained ahead of tonight’s Jackson Hole speeches. US bond yields and the dollar rose slightly.

Interest rates: US 10yr treasury yields rose from 2.17% to 2.19%, 2yr yields from 1.31% to 1.33%. Fed fund futures yields continued to price the chance of a December rate hike at around 38%.

Currencies: The US dollar index is up 0.1% on the day. EUR ranged between 1.1785 and 1.1815. USD/JPY rose from 109.05 to 109.46. AUD fluctuated between 0.7867 and 0.7910. NZD ranged between 0.7192 and 0.7222. AUD/NZD extended its multi-week rally to 1.0966.

Economic Wrap

US existing home sales fell 1.3% in July (vs +0.5% expected), extending an erratic uptrend since 2010. Kansas Fed manufacturing rose from 10 to 16 (vs 11 expected).

Fed hawk George expected another rate hike this year and balance sheet tapering to start soon, noting the economy is in good shape. Kaplan added the terminal Fed rate may be closer to 2% than 3%."