Analysts at Westpac offered an economic wrap.
"US personal income rose 0.3% in Sep (vs 0.4% expected) while personal consumption rose 0.5% (vs 0.4% expected). The report was a mixed bag overall, with the saving rate slipping from 5.8% to 5.7%. The core PCE deflator (Fed-favoured measure of inflation) remained stuck at 1.7% yoy (as expected), matching the Fed’s forecast. The Chicago Fed PMI fell from 54.2 to 50.6 (vs 54.0 expected). Still in expansion mode (just), the series has been subject to volatility in auto production. The Dallas Fed PMI rose to -1.5 (vs +2.0 expected), still in contractionary territory thanks to the oil sector.
Economic Event Risks Today
RBA decision: in wait and see mode, with the focus shifting from inflation to the labour market.
China PMIs have improved but are still showing broadly flat conditions. Employment remains a concern across the economy.
Bank of Japan decision: a press conference and updated outlook are due after meeting ends today.
The GDT dairy auction tonight is predicted by futures prices to result in a WMP rise of around 10%. Adverse weather has reduced supply."