3 things ASX investors should watch this week

Keep your eyes on these events, because they may rock your stocks.

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There's plenty happening this week that could impact your ASX shares.

Here are the three critical developments to watch, as picked by eToro market analyst Josh Gilbert:

1. RBA minutes and bulletin

The Reserve Bank will release the minutes of its September meeting on Tuesday, and its latest quarterly bulletin on Thursday.

Gilbert reckons both will be "significant" as new governor Michele Bullock begins her term.

"Markets will be watching closely to get a better picture of just how hawkish Bullock intends to be, with many analysts expecting at least one more hike in this cycle before the RBA calls time on its mission to facilitate a soft landing."

The incoming governor may acknowledge the impact of 12 interest rate rises after "a middling earnings season across discretionary goods categories".

"But stubborn Australian unemployment figures and a surprising uptick in US consumer price data last week may serve as a warning to not ease off just yet."

2. US interest rates

Meanwhile, on Wednesday, an interest rate decision is handed down across the Pacific.

Gilbert noted this will be the third-last meeting this year for the US Federal Reserve, which doesn't meet in October.

"While markets are anticipating a pause on rates, it's unlikely the Fed is altogether done with its hiking cycle as inflation continues to prove difficult to tame and the central bank remains firm on its 2% inflation target."

Afterwards, the Federal Open Market Committee (FOMC) Economic Projections will be released.

"[The projections] should give markets a clearer picture on how close the Fed is to acknowledging the peak of this current cycle."

3. China interest rates

Then, on Friday, the world's second-largest economy and Australia's biggest trading partner will review its one- and five-year loan lending rates.

Officials in China are increasingly worried about the sluggish post-COVID economy there, so a cut to both wouldn't surprise Gilbert.

"Even so, a cut of anything less than 0.10 percentage points will almost certainly not be enough to keep up with the financial turmoil. 

"Last month, the People's Bank of China on Monday cut the one-year loan prime rate from 3.55% to 3.45%, but left the five-year loan prime rate unchanged, stoking disappointment as the call for more decisive measures from the central bank and government grows louder."

The Chinese economy faces a "triple threat", he added: low demand for Chinese goods, a wrecked real estate market, and record low birth rates.

"Markets seem to be growing sick of a lack of firm rehabilitative action in the Chinese economy."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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