Economic wrap: FOMC minutes - more caution on the part of the doves - Westpac

Analysts at Westpac offered an economic wrap on FOMC minutes day that offered a tad more caution on the part of the doves.

Key Quotes:

US JOLTS job openings fell from 5831 to 5443 (vs 5800 expected) - a weaker outcome. The quit rate was unchanged at 2.1% (i.e. no increase in employees walking away from their jobs, often read as a gauge of confidence in the labour market/jobs prospects), while on the supply side, in percentage terms, openings fell from 3.9% to 3.6% - the lowest since Dec 2015.

The FOMC minutes of the September meeting were a lengthy and detailed discussion of all the competing views on the economy and policy. On balance they arguably reveal a tad more caution on the part of the doves than many might have expected but overall the minutes basically reinforce the thrust of recent Fedspeak: members overall felt the case for a hike had strengthened but a "majority" wanted to see more progress first, a couple emphasized caution and 3 want to hike now (Sep).

Economic Event Risks Today

NZ REINZ housing data is due, and will be read for signs the recent LVR restrictions are biting. There’s also manufacturing PMI and food prices.

China trade balance: it beat expectations in August as the rise in exports offset gains in imports. September is expected to see little change.

FOMC member Harker continues a run of Fed speakers, discussing the economic outlook in Philadelphia.