After several weeks of following US and European economic reports, Australian investors will get the chance to see how the domestic economy is performing into the end of the year.
This week’s key data points include Building Approvals and New Home Sales on Wednesday, then the quarterly CAPEX reading on Thursday, followed by the Monthly Retails Sales data on Friday.
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The Building and New Home sales data have been steady over the last six months and have not offered any surprises which the RBA have had to respond. This week’s data is expected to show that building approvals have bounced back from last month’s 8.7% decline and the sales of new homes is in the 3% range.
The CAPEX and Retail Sales data are a different story. These two data points have been diverging over the last 12 months. Friday’s retail sales report is called .3% higher, which would be the third consecutive monthly increase. On the other hand, the quarterly CAPEX data is expected to show a 2.8% decline reflect the third consecutive quarter of weaker Capital Outlays and the 7th quarter of the last 8 quarters.
From an interest rate policy perspective, the CAPEX data has the greatest potential to move the market.
