Market wrap: little change, awaiting Jackson Hole - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Most markets were little changed overnight, this Friday’s Yellen speech being the main focal point. The S&P500 is up 0.2%, oil +1.2%.

Interest rates: US 10yr treasury yields ranged sideways between 1.53% and 1.57%. Market pricing of the Fed funds rate firmed slightly, implying around a 30% chance of a rate hike in September, a 65% chance by December, and 100% by June 2017.

Currencies:  The US dollar index is little changed on the day, although did sag after some disappointing US data. EUR rose to 1.1355 early London but then slid to 1.1304. USD/JPY was stable around 100.20. AUD rose to 0.7655 before reversing to 0.7616. Outperformer NZD rose to 0.7344 before slipping back to 0.7297. RBNZ Governor Wheeler’s comment that there was no need for rapid easing may have been a factor in its outperformance overnight. AUD/NZD extended its recent downtrend to 1.0419 – a six-week low."