Underlying inflation was expected to remain low for a time before picking up gradually as spare capacity in labour and many product markets diminished,” the minutes of the August 2 policy meeting showed Tuesday. “In coming to their policy decision, members noted that the recent CPI data had confirmed that inflation was likely to remain low for some time. They also observed that while prospects for growth were positive, there was room for stronger growth, which could be assisted by lower interest rates.”

On Wednesday, only Wage Prices Index figures were released from Australia. Australia’s wage price index rose in the last quarter, official data showed on Wednesday.In a report, Australian Bureau of Statistics said that Australian wage price index rose to a seasonally adjusted 0.5%, from 0.4% in the preceding quarter. Analysts had expected Australian wage price index to rise to 0.5% in the last quarter.

Thursday's session brought Australian job data. The unemployment rate has dropped to 5.7 per cent, with the Bureau of Statistics estimating that 26,200 jobs were added in July. The headline result was better than the market expected, sending the Australian dollar up around half a cent at one point, to a peak of 77 US cents shortly after the data release at 11:30am (AEST). The 26 economists surveyed by Bloomberg typically expected 10,000 jobs to be added, leaving unemployment steady at 5.8 per cent. However, the data were not unambiguously positive, with jobs growth entirely driven by part-time employment, while full-time jobs fell. Part-time employment rose by an estimated 71,600, while the number of full-time workers dropped by 45,400.

This week markets will be looking at:

Construction Work Done (Wednesday 3:30)