Economic wrap: US data strong, PCE on the cards next - Westpac

Analysts at Westpac offered an economic wrap where the US GDP in Q3 was revised higher in its second estimate, from 2.9% to 3.2% (3.0% expected).

Key Quotes:

"Corelogic house prices rose 0.8% in Sep, for a 5.1% yoy gain.

Consumer confidence (Conference Board) jumped from 100.8 to 107.1 in this survey which was conducted after the US election. Interestingly, almost all regions, regardless of political bias, reported a lift in sentiment.

There was Fedspeak from Dudley and Powell, the latter saying the case for a hike has clearly strengthened during the past month and adding to the chorus of signals that a Dec hike is highly likely.

Economic Event Risks Today

Australian dwelling approvals should fall 2% in Oct as the high rise segment continues to pull back. Private credit has lost momentum in 2016. Expect another 0.4% gain in Oct.

US personal income and spending gains should remain robust. PCE inflation is a key consideration given the shift in market sentiment post US election.

ECB president Draghi speaks again. In the US its Kaplan and Mester.

RBNZ: New Zealand’s financial system is sound but continues to face risks