US dollar index is unchanged on the day - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US equities nudged to a record high for the fourth consecutive day, while interest rates are slightly higher and the USD is little changed.

Interest rates: US 10yr yields initially fell from 2.32% to 2.30%, but rose to 2.35% after some strong economic data. After some fluctuation, 2yr yields are 1bp higher at 1.48%. Fed fund futures yields continued to price the chance of a December rate hike at 82%.

Currencies: The US dollar index is unchanged on the day. EUR was confined to a 1.1745-1.1788 range, a resilient performance given concerns Catalonia will secede from Spain (Spanish equities fell 3%). USD/JPY remained rangebound, between 112.30 and 112.95. AUD ranged between 0.7838 and 0.7871. NZD fell from 0.7190 to 0.7155. AUD/NZD rose from 1.0940 to 1.0975.

Economic Wrap

US private sector employment (ADP) rose 135k in Sep (as expected), although August was revised lower from 237k to 228k. Hurricane effects and an already tight labour market were likely factors for the lower September reading. Non-manufacturing activity (ISM)rose from 55.3 to 59.8 (vs 55.5 expected) – a 12-year high."