Busy Week Ahead for Investors With CPI, Consumer Spending and Nvidia Results
Australian inflation, household spending and major global economic data will give investors fresh clues on interest rates, economic growth and the outlook for markets
Investors are heading into a busy week of economic and corporate updates, with Australian inflation, household spending, central bank commentary and Nvidia's earnings among the key events to watch.
The biggest local focus will be July CPI inflation data on Wednesday. Expectations are for headline inflation to ease from 3.8% to 3.2%, helped by last year's sharp July increase dropping out of the annual calculation. The RBA's preferred trimmed mean measure is also expected to decline to 3.5%.
Australian spending and economic activity in focus
The ABS household spending indicator on Thursday will provide another look at consumer activity. Forecasts point to 0.3% monthly growth in July, taking annual growth to 5.7%, suggesting households could remain relatively resilient despite slower income growth.
Investors will also receive Q2 construction work data on Wednesday and private-sector capital expenditure figures on Thursday. Construction activity is expected to remain relatively flat, while capital spending is forecast to be unchanged after strong growth in the first quarter.
The RBA minutes on Tuesday will offer further detail on the central bank's decision to leave rates unchanged this month and its assessment of ongoing inflation risks.
Global markets bring more major events
In the US, July PCE inflation will be closely watched because it is the Federal Reserve's preferred inflation measure. Expectations are for a 0.2% increase, which would leave inflation above the Fed's desired level.
The week will also feature Q2 US GDP, consumer confidence and house price data, while China will release its July industrial profits figures.
Meanwhile, Fed Chair Kevin Warsh is scheduled to speak at the Jackson Hole central banking gathering on Friday. Investors will be watching for clues about the future direction of US interest rates, particularly as global bond yields remain a key market concern.
Nvidia earnings put AI in the spotlight
For equity investors, Nvidia's Q2 earnings could be one of the week's most important events.
The company has become a major indicator for the broader AI ecosystem, meaning its results and outlook could influence sentiment across technology and AI-related stocks.
What it means for investors
This week's data could provide important signals on the direction of inflation, consumer demand and interest rates in Australia and overseas. Investors will particularly watch whether easing Australian inflation strengthens the case for lower rates, while Nvidia's results could determine whether enthusiasm around AI-driven growth remains strong.
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