Economic wrap: US data string, FOMC minutes were vague - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US durable goods orders rose 4.8% in October (vs 1.7% expected). Although heavily inflated by aircraft, breadth is nevertheless there, with five of six categories posting gains in the month. Core measures for both orders and shipments were largely in line with expectations and won't fuss anyone. Capital goods orders (ex things like defence equipment and aircraft) rose 0.4% (0.3% expected) while core shipments rose 0.2% (0.1% expected).

Consumer sentiment (Univ. Michigan) rose from 91.6 to 93.8 (vs 91.6 expected) in the final version of the November survey. The preliminary version pre-dated the US election, so the jump probably reflects post-election sentiment.

FOMC minutes noted a hike was seen as appropriate "relatively soon," with some policymakers saying a December tightening was important to "preserve credibility." That has been signalled by recent Fedspeak, and merely confirms the 25bp hike in December which the market has fully priced in.

Economic Event Risks Today

The US has a holiday (Thanksgiving) which can informally spillover until the weekend, potentially making for quiet markets until next week. German data tonight worth watching includes IFO business sentiment and final Q3 GDP."