There will be several events in the coming week that ASX investors will want to monitor for the sake of their portfolios.
Here are the three most critical to watch, according to eToro market analyst Josh Gilbert:
1. RBA governor speech
Australia collectively breathed a sigh of relief last week when the Reserve Bank of Australia board decided to keep interest rates the same.
On Wednesday, RBA governor Phillip Lowe will make a speech at the national conference for the Economic Society of Australia that could shed some light on the next moves.
"The speech comes at a key time for investors but also for Governor Lowe, with his current role up for grabs," said Gilbert.
"Treasurer Jim Chalmers will make a decision on the role of governor before the end of July, with a shortlist of names already on his desk."
Investors and mortgage holders alike will be focusing on Lowe's every word to decipher whether the RBA will remain hawkish or if the end of the hike cycle is imminent.
"He's unlikely to offer too much to investors, but they may take some comfort in the latest pause as a sign that the board [is] beginning to wind down the aggressive stance they have taken this year."
2. US inflation
The latest consumer price index numbers for the United States will also be revealed on Wednesday.
Inflation has come down significantly throughout 2023, but not yet enough for the US Federal Reserve to declare the end of rate rises.
"Headline inflation could see another notable decline this week, with current estimates showing a fall to 3.2% from 4% the previous month, thanks mainly to falling energy costs."
Gilbert added "sticky core inflation" is the critical number to watch as it "looks set to stay at 5%", which will mean a rate hike this month.
"If inflation, especially core, shows signs of sticking around, alongside a red-hot labour market in the US and consumer spending that is resiliently plodding along, then it may mean rates may keep rising and stay higher for longer than markets are currently pricing."
3. China inflation
It's an inflation-a-thon this week, as Monday will see a CPI report from the world's second-largest economy and Australia's largest trading partner.
According to Gilbert, a spluttering Chinese economy is "screaming for the government to ramp up measures to support growth".
"The Chinese Yuan dropped to a seven-month low this week after services growth softened more than expected, with consumers scaling back spending amid an uncertain backdrop."
China is fighting the opposite battle to Western nations as it tries to drag up a very low inflation rate.
"Another disappointing reading on inflation next week would be a strong signal for the People's Bank of China (PBOC) to roll out stimulus."
The market is expecting inflation to "stall", pricing in an unchanged 0.2% to be revealed this week.
"The expectation, however, is for [stimulatory] measures to be drip fed rather than flooded, which could mean China's economic strife continues."
