AUSTRALIAN DIARY: Everything you need to know about the week ahead for markets

(Aurelien Morissard / IP3 / Getty Images)

It’s a quieter week ahead on the domestic data calendar, so the price action in Australia likely to be guided by global markets.

Rising US bond yields remained as the dominant narrative on Friday night, as benchmark US 10-year bond yields closed at a new multi-year high of 3.23%.

It followed key US employment data, which showed jobs growth missed expectations but a fall in participation levels saw the unemployment rate drop to its lowest level since 1969.

The Aussie dollar remains under pressure and will start the week at 0.7053 US cents, its lowest level since February 2016.

And ASX futures closed 28 points lower, after further falls on the S&P500 as the bond market selloff continues to rattle stock investors.

To the week ahead:

Australia

To start the week, the economics teams at NAB and Westpac will provide their regular monthly updates on business and consumer confidence.

NAB’s monthly business survey on Tuesday follows a mixed report in August when business confidence slumped to a two-year low, but there were promising signs for wage growth and retail sales.

And Westpac’s consumer sentiment survey on Wednesday may get some extra attention, after political chaos and higher mortgage rates saw the index fall to its lowest reading since November 2017 last month.

On Thursday morning the RBA’s Lucy Ellis will speak at the Melbourne Institute’s 2018 Economic and Social Outlook Conference.

Then there’s August housing finance data from the ABS on Friday, where markets will get an update on the slowdown in credit growth to housing investors.

International

Chinese markets were closed for the whole of last week, so traders will be watching how stocks in Shanghai react to rising bond yields and ongoing trade tensions when they reopen on Monday.

ANZ’s currency strategists highlighted aggregate financing data (Wednesday) and September trade balance (Friday) has two key data points out of China this week.

And September CPI data on Thursday night will give an update on US inflationary pressures.

However, ANZ noted the US Fed is signalling more rate hikes to come as the economy strengthens. In view of that, “it is likely that the CPI data will become somewhat secondary, as long as we see no signs of deceleration in the core measure”.

Here’s ANZ’s full calendar (key events for currency markets are shaded):

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