Market wrap: dollar makes fresh decade highs - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar made a fresh decade high after some solid economic data, but later reversed course amid thin trading conditions.

Interest rates: US 10yr treasury yields initially rose from 2.43% to 2.52%, later reversing to 2.45%. 2yr yields rose from 1.19% to 1.25% before retracing to 2.22%. Fed funds futures continued to price in a 100% chance of a hike by June and another by November.

Currencies:  The US dollar index made a 14-year high after the US data but started reversing soon afterwards for a net 0.3% gain on the day. Underperformer EUR fell from 1.0485 to 1.0341 (a 14-year low) before retracing to 1.0434. USD/JPY did a roundtrip from 117.335 to 118.60 and back. Outperformer AUD rose from 0.7200 to 0.7241, within the 0.7160-0.7245 range of the past two weeks. NZD fell from 0.6975 to 0.6890 before retracing to 0.6940. AUD/NZD rose from 1.0360 to 1.0463."