Key data in Australia this week will be led by Thursday’s employment report.
Looking abroad, central banks in the US, Europe and the UK are all scheduled to make announcements on interest rates. There’s also US inflation data for November on Wednesday night.
US jobs growth easily exceeded forecasts on Friday, which boosted risk-appetite on global equities markets as the S&P500 hit a new record high.
While US non-farm payrolls beat expectations, wage growth again missed estimates after figures for the previous month were downgraded.
The US dollar index edged higher while the UK pound was the worst performer among the major currencies on Friday, as traders appeared to take profits after an agreement was reached on Brexit divorce negotiations.
The AUD remains under pressure and will open on Monday at just above US75 cents, after last week’s GDP and trade data both missed expectations.
NAB’s monthly business survey will be released Tuesday morning, after data for October showed domestic business conditions rose to an all-time high.
That will be followed by Westpac’s monthly consumer confidence index on Wednesday, which dipped back into negative territory last month as the divergence between local business and consumer confidence remains apparent.
Also on Wednesday morning RBA Governor Philip Lowe will make a speech at the Australian Payment Summit with the interesting title of “An eAUD?”.
Then the main event of the week will be Thursday’s jobs data from the ABS at 11:30am AEDT. The median forecast is for another 15,000 jobs to be added in November, which would mark 14 consecutive months of growth for Australia’s labour market.
Here’s this week’s data calendar, via ANZ:
The UK has November inflation data on Tuesday night, ahead of the Bank of England’s interest rate announcement on Thursday with the official cash rate expected to stay on hold at 0.5%.
Then on Wednesday the UK has employment data for October, including the unemployment rate and average weekly earnings growth.
And later on Wednesday night there’ll be two key market-moving events in the US, starting with monthly inflation data. Core CPI is forecast to rise by 0.2% in November, leaving annual growth at 1.8%.
That will be followed by the US Federal Reserve’s December interest rate announcement. With the prospect of a 0.25% rate rise now fully priced in, markets will be closely analysing the Fed’s outlook for further rate rises next year.
Then attention turns to the European Central Bank on Thursday, with the main refinancing rate almost certain to be kept on hold at 0.0%. Markets instead will focus on ECB President Mario Draghi’s outlook for growth and inflation.
Also on Thursday there’s retail sales data for China, the UK and the US along with a wave of preliminary PMIs for December.
And Brexit discussions will remain ongoing throughout the week, culminating in a meeting of European leaders at the EU summit on Friday discuss the next phase of negotiations including trade talks.
Here’s a schedule of the key events on this week’s international calendar (also via ANZ):