Separate report, on Trade Balance showed that in trend terms, the balance on goods and services was a deficit of $476m in December 2017, an increase of $313m on the deficit in November 2017. In seasonally adjusted terms, the balance on goods and services was a deficit of $1,358m in December 2017, a turnaround of $1,394m on the surplus in November 2017. In seasonally adjusted terms, goods and services credits rose $510m (2%) to $32,465m. Non-rural goods rose $719m (4%). In seasonally adjusted terms, goods and services debits rose $1,905m (6%) to $33,823m.

However, the focus of the session was on, RBA interest rate decison and the following statement. According to the the latest RBA statement the Board decided to leave the cash rate unchanged at 1.50 per cent. There was a broad-based pick-up in the global economy in 2017. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth has also picked up in the Asian economies, partly supported by increased international trade. The Chinese economy continues to grow solidly, with the authorities paying increased attention to the risks in the financial sector and the sustainability of growth.

On Friday, China CPI and PPI figures were released. China’s consumer inflation cooled to 1.5 percent in January, in line with economists’ forecasts, official data showed on Friday. The consumer price index (CPI) had been expected to moderate from a 1.8 percent gain in December. The producer price index (PPI) rose 4.3 percent from a year earlier, also cooling from the previous month’s rise of 4.9 percent, the National Bureau of Statistics (NBS) said on its website.  Analysts polled by Reuters had predicted producer inflation would ease to 4.4 percent in January.

This week markets will be looking at:

NAB Business Confidence (Tuesday 1:30)

Employment Change/Unemployment Rate (Thursday 1:30)