However, the focus of the session, was on RBA interest rate decision.The Reserve Bank of Australia held the cash rate steady as expected at a record low 1.50%, but cited the strong Australian dollar as a concern, as new Governor Philip Lowe released the first decision of his term. Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector.

Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this. Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Wednesday brought Australian Retail Sales figures. Australian retail turnover rose 0.4 per cent in August 2016, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.  This follows a relatively unchanged (0.0 per cent) July 2016. In seasonally adjusted terms, the largest rise was in department stores (3.5 per cent), which followed a fall in July of 5.8 per cent. There were also seasonally adjusted rises in cafes, restaurants and takeaway food services (1.2 per cent), food retailing (0.3 per cent) and household goods retailing (0.2 per cent). There were falls in other retailing (-0.6 per cent) and clothing, footwear and personal accessory retailing (-0.4 per cent).

Thursday was marked by Australian Trade Balance figures were released. Australian retail turnover rose 0.4 per cent in August 2016, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.  This follows a relatively unchanged (0.0 per cent) July 2016. In seasonally adjusted terms, the largest rise was in department stores (3.5 per cent), which followed a fall in July of 5.8 per cent. There were also seasonally adjusted rises in cafes, restaurants and takeaway food services (1.2 per cent), food retailing (0.3 per cent) and household goods retailing (0.2 per cent). There were falls in other retailing (-0.6 per cent) and clothing, footwear and personal accessory retailing (-0.4 per cent).

This week markets will be looking at:

NAB Business Confidence (Tuesday 2:30)

China's Trade Balance (Thursday)

China's CPI/PPI (Friday 3:30)