Market wrap: dollar recovers from a 30-month low - Westpac

Analysts at Westpac offered their market wrap.

Key Quotes:

"Global market sentiment: Markets reversed yesterday's risk averse response to North Korea's firing of a missile over Japan. US bond yields, the dollar, and equities rebounded to end the day flat.

Interest rates: US 10yr treasury yields, which fell as far as 2.08% yesterday, which was the lowest since November, rebounded to2.14% (compared to 2.16% pre-missile news). 2yr yields rebounded from 1.30% to 1.32%.

Currencies: The US dollar index is unchanged on the day, having earlier fallen to a 30-month low in response to the missile news, but rising from the London morning onwards. EUR peaked at 1.2070 and retraced to 1.1993. Safe havens such as the Swiss franc an yen gave up their earlier gains, USD/JPY rising from 108.27 to 109.36 (where it was trading pre-missile news). AUD rose from 0.7906 to 0.7983. NZD rose from 0.7218 to 0.7299. AUD/NZD ranged sideways between 1.0928 and 1.0985.

Economic Wrap

US consumer confidence (Conference Board) rose in August, from 120.0 to 122.9 (second highest level since 2001), despite North Korean tension and protests in Charlottesville, which augurs well for consumption growth ahead. Labour-related readings were strong, those saying jobs were hard at a 16-year low."