Market wrap: antipodeans under pressure - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The NZD and AUD remained under pressure during a mostly quiet session for global markets. Bond yields were sparked slightly lower after the Russian ambassador was shot in Turkey a few hours ago.

Interest rates: US 10yr treasury yields fell from 2.59% to 2.53%, the latter half of the move attributable to the shooting in Turkey. Yellen is speaking as we write, noting the strong jobs markets and wage growth, causing yields to rebound. The 2yr yield fell from 1.25% to 1.22%. Fed funds futures continued to price in a 100% chance of another hike by June.

Currencies:  The US dollar index slipped modestly for the second consecutive day. EUR fell from 1.0580 to 1.0412. USD/JPY fell from 117.50 to 116.55. AUD fell from 0.7300 to 0.7249 – a seven-month low. NZD fell from 0.6980 to 0.6933. AUD/NZD drifted sideways between 1.0440 and 1.0475, not obviously affected by Australia’s fiscal update yesterday."