The Australian share market is expected to open slightly higher on Monday after gains in the US and European markets on Friday.
AMP Capital's chief economist Shane Oliver is tipping the local market to open reasonably well, ahead of a big week of economic data being released.
Investors will be keenly observing the Reserve Bank of Australia's meeting on Tuesday, with interest rates tipped to remain at 1.5 per cent for the fourteenth straight month, according to Dr Oliver.
Wall St closed at record levels for the third straight day on Friday, with the benchmark S&P index posting its sixth straight month of gains.
For September, the Dow gained 2.1 per cent, the S&P rose 1.9 per cent and the Nasdaq advanced 1.05 per cent.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"There seems to be ongoing optimism in the overseas markets," Dr Oliver told AAP.
In Australia, the share market ended a choppy session in positive territory, with a respite in falling iron ore prices helping materials and resources stocks recover lost ground.
The benchmark S&P/ASX200 stock index finished Friday up 0.2 per cent to 5681.6 points, while the Australian dollar was trading at 78.40 US cents at the close.
Dr Oliver said the Reserve Bank would prefer the dollar to be around 70 US cents for more stable growth.
A busy week of economic data begins on Monday with CoreLogic releasing home prices data for last week.
Along with the RBA meeting on Tuesday, the Australian Bureau of Statistics (ABS) releases building figures for August, with Dr Oliver expecting a bounce in figures.
On Thursday, the ABS releases retail sales trades for August and international trade figures.
Dr Oliver said both should see a rise from the previous figures.
