RBA Governor Phillip Lowe is speaking this week and will likely focus on the recent deviation from hawkish to a more neutral bias by Central Banks across the Globe. In the case of Australia, it would be interesting to see if there are other catalysts besides the on-going housing market downturn, China economic downturn, and the gloomy global environment.
This weekend preliminary housing auction results surprised to the upside for Sydney and Melbourne. Nationally, 1400 auctions were held, up from last week but more than 20% down from last year. It seems liquidity is starting to come back a tad.
Keep an eye on the Australian key releases this week including RBA minutes on Tuesday, wages on Wednesday and employment data on Thursday. After the recent tilt to a more neutral stance by the RBA, the market is already pricing rate cuts over the next year.