The Reserve Bank releases its decision on interest rates for July, while US unemployment figures and Chinese performance indices are due offshore.

It's a mixed and busy week ahead with the Reserve Bank’s July interest rates decision likely to be the centre of attention.

Domestically, the Australian Industry Group will release a trio of performance indices, while the latest reads on Australia’s trade balance and retail sales are due out of the Australian Bureau of Statistics.

Offshore, America delivers the bulk of economic news with the latest reads on unemployment and vehicle sales due.

A series of performance indices out of China will also warrant attention.

Reserve Bank

A busy week for the Reserve Bank of Australia with its monthly board meeting and speeches from two of its highest-level executives.

Tuesday will see the central bank’s board convene its July meeting. At its conclusion, Governor Glenn Stevens will announce the group’s decision on interest rates. The board held the official cash rate at 2.75 per cent in June after a cut of 25 basis points in May. Most economists expect no action will be taken at the July meeting, though a cut is tipped before the end of the year.

On Wednesday, Governor Stevens will address an Economic Society of Australia business luncheon in Brisbane.

Thursday will see Reserve Bank Deputy Governor Philip Lowe address the second conference on Global Financial Stability and Prosperity in Sydney.

Local data

There’s no shortage of local data this week with a trio of indices from the Australian Industry Group, as well as the latest reads on the trade deficit and retail sales.

Monday brings the TD Securities-Melbourne Institute monthly inflation gauge.

The Australian Industry Group’s performance of manufacturing index will also be unveiled, alongside the RP Data-Rismark home value index.

On Wednesday the trade deficit for May will be released, with economists expecting a modest $300 million surplus. Also out of the Australian Bureau of Statistics will be the retail sales figures for May.

Elsewhere, the Australian Industry Group’s performance of services index is released.

Thursday brings the release of building approvals for May, out of the ABS.

On Friday the Australian Industry Group’s performance of construction index is released.


Yet another quiet week on the corporate front as the August earnings season edges closer.

Monday is the date payable for ANZ.

Tuesday is the date payable for Westpac, while Comet Resources will release its interim results.

Elsewhere, Buccaneer Corporation and Transol Corporation will convene extraordinary general meetings.

Thursday will see Verus Investments and Ascot Resources hold respective extraordinary general meetings in Perth.

On Friday Australia Oriental Minerals will convene its annual general meeting in Adelaide.


The United States again dominates foreign economic news this week, though some key indices out of China will also be of interest.

On Monday the official manufacturing purchasing managers’ index for is due out, with Bloomberg expecting a slight fall on the previous month to print at 50.1. Shortly after the HSBC manufacturing PMI will be released with Bloomberg tipping a slight lift to a read of 49.2.

Vehicle sales for June will be released out of Japan.

Tuesday will deliver construction spending for May out of the United States, with Bloomberg forecasting a lift of 0.6 per cent. Elsewhere the ISM manufacturing index is also due out of America.

On Wednesday both non-manufacturing PMI and HSBC services PMI are due out of China.

In the United States factory orders for May are due out, with Bloomberg tipping a 1.8 per cent lift. Total vehicle sales are also expected.

Thursday will deliver the US trade balance for May. Bloomberg estimates the official number will narrow slightly to $40 billion.

In the United Kingdom, the Bank of England will hand down its monthly rates decision.

Late on Friday, the US will unveil its unemployment figures for May. Bloomberg expects the official unemployment rate to fall from 7.6 per cent to 7.5 per cent.

Elsewhere, the latest leading and coincident indices are due out of Japan.

Wrapping up

Wednesday will see Vodafone Hutchison Australia chief executive officer Bill Morrow address an American Chamber of Commerce in Australia business briefing in Melbourne.

Elsewhere, Professor Suzanne Cory, president of the Australian Academy of Science, will address the National Press Club in Canberra. Professor Cory will deliver a speech entitled ‘D/evolving Australia’.

Meanwhile in Perth, chief executive of DBP Transmission Stuart Johnston will address a Committee for the Economic Development of Australia luncheon centred on the ‘Outlook for domestic gas supply in WA’.

On Friday, managing director of Beach Energy Reg Nelson and managing director of Senex Energy Ian Davies will take part in an American Chamber of Commerce in Australia internode business luncheon in Adelaide. The focus of the event will be ‘Maximising SA's unconventional gas resources’.

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