Economic wrap: U.S. data - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US wholesale inventories rose 0.2% in Sep (vs +0.1% expected), which combined with the trade data surprise could result in GDP forecasts being revised higher. The Sep trade balance rose from -%59.2bn to -$56.1bn (vs -$60.5bn expected), with exports rising for a fourth consecutive month and gains broad-based. Services PMI (Markit) rose to 54.8 (vs 52.5 expected). New home sales rose 3.1% (vs -1.5% expected), for a total rise of 120% since the 2011 record low. The median price rose 6.7% to $313,500.

Economic Event Risks Today

NZ trade balance in Sep is expected to remain in deficit, with exports seasonally low. The risk is a much larger deficit if plane imports materialise.

Australia terms of trade for Q3: export prices were higher for a second quarter on the commodity price bounce, but import prices probably fell for a fourth quarter due to energy prices and the exchange rate.

US durable goods orders are set to remain weak, an enduring concern for policy makers."