Rates are expected to remain steady again as the Reserve Bank meets but new housing data is likely to show another drop in prices.
Tuesday’s RBA meeting is also likely to show the labour market is tightening and wages could be starting to rise.
‘There will be no change for the Reserve, they’ll leave rates as is for another month,’ CommSec chief economist Craig James said.
House price data is also due to be released on Tuesday and would likely show an unsurprising drop in prices, he said.
‘It’s everyone’s favourite dinner party topic but the double digit annual gains in cities like Melbourne and Sydney couldn’t be sustained and it’s coming back down to earth,’ Mr James said.
But the latest employment figures are due to come from the United States on Friday which are expected to be a good result.
‘It’s going to be the thing to watch from the United States and if it’s positive you can almost guarantee further rate hikes and a stronger US dollar,’ the chief economist said.
Most of the country will start the new financial quarter on a public holiday, with Victoria one of the few the active markets.
‘The mining and energy sectors have had pretty favourable lead ins and futures is pointing to a softening of the industrials,’ Mr James said.
Gold prices had risen, iron ore was up 30 cents and zinc was a standout for base metals recording a 5.2 per cent rise, he said.
While some people were eagerly watching the AFL Grand Final others were poring through the interim report of the royal commission into the banking and financial services sector.
‘There’s a bit more to come through with that as investors and analysts go through the findings and see what that means for them,’ Mr James explained.