Analysts at Westpac offered a market wrap and a snapshot of the event risks ahead today and tonight.

Key Quotes:

"Global market sentiment: Amid little major news flow for markets, the US dollar and US interest rates rose, and equities nudged to fresh record highs.

Interest rates: US 10yr yields rose from 2.20% to 2.24% (a one-month high), 2yr yields rose from 1.38% to 1.40% (a two-month high). Fed fund futures yields continued to price the chance of a December rate hike at 56%.

Currencies: The US dollar index is up 0.2% on the day. EUR ranged sideways between 1.1920 and 1.1970. USD/JPY rose from 111.15 to 111.66 – a two-month high. AUD fell from the Sydney peak of 0.8035 to 0.7940 – a two-week low. NZD fell from yesterday’s peak of 0.7344 to 0.7248. AUD/NZD ranged sideways between 1.0950 and 1.0985.

Economic Wrap

US homebuilder sentiment (NAHB) slipped from 67 to 64 (vs 67 expected), probably influenced by Hurricane Harvey.

Event Risk

Australia: The RBA minutes will provide more information on the Board’s expectations but note that the meeting took place before the Q2 GDP release. In a post meeting speech, Governor Lowe reiterated that balancing support for the labour market and risks to household debt remain front of mind. He also noted that this month’s meeting special discussion was on the Chinese economy.

NZ: GDT dairy auction tonight is priced by NZX futures to result in little change in the key whole milk powder price. Consumer confidence (Westpac) was sitting at a two-year high in June.

Euro Area: Sep ZEW survey of expectations were last at 29.3, a second monthly drop but it is still indicating continued optimism in the European economy.

US: Aug housing starts are expected to bounce 1.7% from a 4.8% fall in Jul, and building permits are seen to drop 0.8% following -3.5% last month. Multi-family housing permits and particularly starts have fallen over the year while those for single-family dwellings have lifted."