Economic wrap: BoJ are watching Trump's dollar - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US personal spending rose 0.3% in Dec (as expected), while personal income rose 0.3% (vs 0.4% expected). The core PCE deflator remained at 1.7% yoy. Pending home sales rose 1.6% in Dec.

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NZ migration in December likely extends the strong positive trend.

Australian private credit is expected to have risen by 0.5% in December, supported by RBA rate cuts and improved momentum in business credit following the election mid-year. AiG surveys have given a positive lead for the NAB business survey for December. Recent months have seen conditions struggle to gain post-election momentum.

In the BoJ’s first meeting of 2017, they will be hoping Trump’s USD uptrend will be a lasting theme.

The Euro Area should see another moderate gain for GDP in Q4. Unemployment and CPI are also due.

In the US, the employment cost index should show further healthy growth in wages at a similar pace to recent quarters. CoreLogic house prices and conference board consumer sentiment are due."