A reasonably good open is predicted for the Australian share market this week, after the US and European markets had modest gains on Friday.
AMP Capital's chief economist Shane Oliver predicts the market to open about 20-25 points, or 0.4 per cent higher on Monday, as markets took the lower than expected US jobs figures well.
Figures from the Labor Department show that the number of jobs in the US economy increased by 156,000 last month, lower than economist expectations of an increase of 180,000.
Economists are bracing for a big week of financial events, including a Reserve Bank of Australia board meeting on Tuesday, local economic growth figures on Wednesday and a European Central Bank meeting on Thursday.
Dr Oliver says it's unlikely the Reserve Bank will move interest rates as changes are usually well flagged, and an increase isn't tipped until the end of 2018.
"They're likely to say economic conditions have improved since the start of the year ... and there's confidence in measures from stopping the property market from growing too much," he told AAP on Sunday.
Data released by CoreLogic last Friday showed housing prices had slowed in both Sydney and Melbourne.
Dr Oliver says all eyes will be on the June quarter economic growth figures to be released on Wednesday, particularly the change in Gross Domestic Product.
He predicts GDP growth to be at 0.5 per cent, up from slow growth in March of 0.3 per cent.
He says "it should rise because of strong consumer spending," and added that the impact of Cyclone Debbie in Queensland and northern NSW slowed down GDP growth in March.
The Australian dollar is at 79.6 US cents and could flirt with 80 US cents in the coming week depending on the strength of economic data and the Reserve Bank.
"It depends on what the Reserve Bank says, a further rise could lead to slower growth and slower inflation," he said.
He says the Reserve Bank would prefer the dollar to be around 70 US cents for more stable growth.
Commodity prices are expected to continue strong, after growth last week in gold, copper and iron ore.
Oil prices have come despite Hurricane Harvey causing about 20 per cent of oil refineries in the US to close, driving demand down while increasing the cost of gasoline.
North Korea's Independence Day on September 9 could influence global markets, depending on how the unpredictable rogue nation celebrates the public holiday.
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