Commentary from the central bank is expected to be the main focus for investors when local markets reopen after the Queen's Birthday long weekend.
Commentary from the central bank is expected to be the main focus for investors when local markets reopen after the Queen's Birthday long weekend.
The Reserve Bank of Australia (RBA) was due to release the minutes of this month's board meeting at 1130 AEST on Tuesday.
And later on Tuesday, RBA deputy governor Ric Battellino was scheduled to address the Financial Executives International of Australia conference.
AMP Capital Investors chief economist Shane Oliver said he expected both the minutes and the speech to leave the impression that the RBA's bias was still to raise interest rates as the global recovery remained on track.
"But the uncertainty with respect to Europe and the impact of that on the global economy, combined with the fact that interest rates have now been returned to longer-term average levels, is likely to see rates remain on hold for a while," Dr Oliver said on Sunday.
The RBA kept the cash rate unchanged at 4.5 per cent on June 1, saying in a brief statement after the meeting that interest rates being charged to borrowers were "around their average levels of the past decade".
Australian stocks look set for a bright start when markets reopen on Tuesday, given the strong finish on overseas markets and firmer commodities prices during Friday night's (AEST) session.
On Wall Street, S&P500 index climbed 0.44 per cent to end the week up 2.5 per cent, the largest weekly gain since March.
The Dow Jones Industrial Average closed the week up 2.8 per cent, after rising 0.38 per cent on Friday.
This was despite figures showing US retail sales fell 1.7 per cent May, the first decline in consumer spending since September and well below market expectations of a small rise.
Market players were instead buoyed by a private sector survey that showed an improvement in consumer confidence and positive results from National Semiconductor, which makes parts used by Apple and Research In Motion.
J.P. Morgan economist Robert Mellman said the May data overstated the extent of the slowdown given core retail sales, which excludes cars, fuel and building materials, did manage a slender 0.1 per cent rise in the month.
While the weekend session provided a positive lead for the local market, there will be another day of trading on overseas markets before Australian bourses resume trading.
"The fact that the US market could rally on the back of such a bad retail sales result is a good sign," Dr Oliver said.
"It looks as though the market is trying to build a bit of a base."
At the close of Friday night's session on the Sydney Futures Exchange, the June share price index futures contract was 84 points higher at 4,525 points.
The Australian dollar also rallied, ending the US session at 84.98 US cents, up from Friday's local close of 84.54 US cents.
