Economic wrap: a mixed bag, now looking to Aussie trade balance - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US ISM services activity jumped from an index of 51.4 to 57.1 (53.0 expected), and was broad-based. It bodes well for both Friday’s payrolls report as well as Q3 economic growth. ADP private sector payrolls slipped from 175k to 154k in Sep (165k expected). Factory orders rose 0.2% in Aug (-0.2% expected) despite price weakness. The trade balance fell slightly from -$39.5bn to -$40.7bn in Aug (-$39.2bn expected), but trade remains on track to make a decent contribution top Q3 GDP growth.

Economic Event Risks Today

Australia’s trade balance for August is due today, the median estimate -$2.3bn (Westpac’s is -$2.5bn). Both exports and imports are expected to fall slightly.

ECB minutes will be closely read in the wake of this weeks reports claiming QE tapering is under consideration."