AUSTRALIAN AGENDA: Everything you need to know about the coming week for markets



The first working week of the new Prime Minister Scott Morrison will be accompanied by a relatively quiet economic calendar to close the month of August.

The political chaos of last week pushed the Aussie dollar, which had fallen back to US 72 cents on Friday morning.

But after a sharp peak after Morrison's victory, the AUD continued to find demand in the global markets and the week began again above US $ 73 cents.

The Aussie was also boosted by weakness in the US dollar, after a long-awaited speech by Fed Chairman Jerome Powell Friday night.

Powell said the central bank is holding on to a "gradual" rate of rate hikes – a more or less blurred picture than expected, which caused the USD to drop and inventories to increase. But ASX futures traders have marked the local index unchanged to start the week.

Benchmark US 10-year bond yields also fell, keeping the yield spread with US 2-year bonds at less than 20 basis points.

To the next week:

Australia

Markets will follow the next round of GDP inputs for the Q2 GDP print on Wednesday, September 5.

On Thursday, the ABS will have the private sector data on capital expenditures for the quarter of June, another input that includes the third estimate of 2018/19 investment forecasts.

Commonwealth Bank expects the capex of the second quarter to rise by 0.9%, so that annual growth will remain at 3.5%. "For the 3rd estimate, a figure of about $ 97 billion would not imply a change in investment intentions compared to the second estimate", according to the CBA.

On Thursday there are also data on approvals of buildings in July, which improved strongly in June, but were subject to considerable volatility in recent months.

And on Friday, the RBA will release July data on credit for the private sector. The June figures showed credit growth among residential investors who turned negative for the first time since 2009.

International

Important data abroad is also weighted at the end of the week, starting with the PCE inflation data in July in the US on Thursday evening.

"We predict that core PCE inflation stabilized at 1.9% for the third month for the third consecutive month," CBA said.

Friday, "investors will critically view China's PMIs with particular interest, as the August press will be the first to show an impact of the trade war on the entire month," said ANZ.

On Friday evening, the Eurozone will receive data prints for unemployment in July (forecast 8.2%, compared to 8.3% in June) and August inflation (prediction of core inflation 1.1%).

Earlier in the week it was an official holiday in the UK on Monday and the US has trade data on Tuesday evening.

Here is the complete calendar (via ANZ):

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