Busy Week Ahead in Australia

The Reserve Bank of Australia (RBA) will also hold its December policy meeting on Tuesday ahead of the release of Q3 GDP numbers the day after. Most analysts expect RBA to leave its interest rate unchanged in light of a strong October jobs report and improved growth in the previous quarter.

Shane Oliver, chief economist at AMP Capital, said in a note, “the RBA is likely to reiterate that the benign inflation outlook provides scope to ease if necessary.” Oliver added he doesn’t expect any rate cuts on Tuesday but said, “further help for the economy will still be needed in the form of another easing at some point as the boost to growth from the housing sector runs its course and non-mining investment remains poor.”

He expects quarter-on-quarter GDP to bounce back to a 0.7 percent increment, driven by “net exports and consumer spending offsetting weak business investment.” Other data expected include the October trade balance on Thursday and retail sales numbers on Friday.