Economic wrap: RBA expected to hold - Westpac

Analysts at Westpac offered an economic wrap and mini preview into the RBA expected to hold. 

Key Quotes:

"US manufacturing PMI (ISM) rose from 49.4 to 51.5 (vs 50.4 expected), although remains well below the 59.9 cycle high (2011). The employment index rose. Construction spending fell 0.7% in August (vs +0.3% expected). Following this report, the Atlanta Fed downgraded its forecast for Q3 GDP from 2.4% to 2.2%

Economic Event Risks Today

The RBA is widely expected to keep the cash rate on hold at 1.5%; in "wait and see" mode as they assess the impacts of the rate cuts delivered in May and August, totalling 50bps.

Australian building approvals in August are likely to retrace July’s upward spike.

NZ business confidence (NZIER) should reflect strong activity but also subdued inflation.

The GDT dairy auction tonight is predicted by NZX futures to result in a 1% rise in WMP prices. Compared to previous auctions, this is a more cautious prediction, probably due to significantly over-predicting last time.

In the US, FOMC member Lacker speaks."