It was a fairly quiet week on the domestic data front with local markets largely taking guidance from developments offshore.
Negotiations between Greek and Eurozone officials around their “loan agreement” have dominated the economic headlines over the last week. With Wall Street having closed at a record level last Friday, and after positive news around the Greek bailout program, our market is set for a strong start to the week. Even European shares hit a seven-year high over the weekend on optimism that Eurozone finance ministers would conclude a deal with Greece.
The key economic release on the data calendar this week will be the capital expenditure survey, with the Reserve Bank watching the forward estimates for expenditure, ahead of their monthly Board meeting next Tuesday. Financial markets are currently pricing a 50% probability of another rate cut from the RBA next week.