US Economy Faces Resilience Test as RBA Raises Rates

US economic data releases are set to test the resilience of the economy. Consumer spending is forecast to rise 0.8% in August, while income is expected to increase by 0.5%. The Bureau of Economic Analysis annual revisions will also provide insights into the state of the economy.

The US labor market figures on Friday are expected to show payroll growth easing to 90K in September, with the unemployment rate remaining steady at 4.1%. In contrast, consumer spending and income growth indicate a resilient US consumer, supporting the idea that demand remains durable.

In other regions, Canada's July GDP is anticipated to be flat, aligning with a slowing but still expanding economy. The Reserve Bank of Australia (RBA) is expected to raise the Cash Rate by 25 bps to 4.60%, which may mark the terminal rate.

Meanwhile, Eurozone inflation is projected to edge higher in September, keeping the possibility of another European Central Bank (ECB) rate rise in play. China's September PMI readings are expected to show a slight improvement in manufacturing activity, while non-manufacturing activity remains subdued.