Market wrap: U.S. dollar extending gains - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar extended recent gains overnight, interest rates also higher ahead of tonight’s eagerly awaited US payrolls report. ECB minutes did not reveal any tapering plan. Oil made a four-month high.

Interest rates: US 10yr treasury yields rose from 1.69% to 1.74% - a one-month high – as positions were rebalanced ahead of tonight’s jobs data.. 2yr yields ranged sideways between 0.83% and 0.85%.

Currencies:  The US dollar index is up 0.6% and at a two-month high. EUR drifted lower from 1.1200 to 1.1146, possibly a drawn-out response to the lack of tapering signal in the ECB minutes, although Constancio’s comment denying tapering consensus did cause a quick 20 pip selloff. USD/JPY extended its recent rise to 104.16 – a one-month high. AUD broke below 0.7600 to 0.7652. NZD extended its recent breakdown to 0.7136. AUD/NZD took a breath after an impressive multi-week run, slipping from yesterday’s high of 1.0635 to 1.0576."