The Australian share market looks set to open flat on Monday mimicking Wall Street's lead where tech stocks rallied to pull the market modestly into the green.
AMP Capital's chief economist Shane Oliver is tipping the local market to open marginally higher at three points on Monday, after climbing back from a midweek dive in its previous session.
On Friday, the local market ended in positive territory with the S&P/ASX200 up 0.17 per cent, at 5715.9 points, despite a tumultuous day for the major banks with South Australia's bank levy sparking fresh talks of further state government-imposed taxes.
"But it looks like a fairly quite start tomorrow," Dr Oliver said on Sunday, adding the market could receive some support from commodities with the price of iron ore, oil, gold and copper all higher on Friday night.
"That might help our resources stocks tomorrow, but overall the market will open fairly flat," he said.
Internationally, investors will be awaiting the federal reserve's preferred measure of inflation, set to be released in the US on Friday.
"That is probably the highlight of the week actually," Dr Oliver said.
"The big issue in the US has been that growth has picked up but inflation has remained very low."
Dr Oliver said while the figures will impact policy in the US with the feds likely to continue gradually tightening and raising interest rates, the data will have little effect on Australian shares.
"I can't see a drastic impact from that on our market," he said adding locally, "second tier" economic data is expected to be released in Australia.
"There isn't any of the exciting stuff like inflation or growth numbers or employment," he said.
The Reserve Bank of Australia will release May's lending figures on Friday which are expected to show credit growth remains fairly moderate.
Dr Oliver said the main interest however, will be on lending to property investors, which have been slowing down in recent months partly in response to the moves by the Australian Prudential Regulation Authority to tighten lending standards in the banks.
"That is probably the most exciting thing in Australia," he said.
"Obviously those numbers are going to be watched to see whether they will slow down in lending to property investors."
Meanwhile the Aussie dollar, which rose marginally on Friday by 0.3 per cent, will remain in comfortable territory buying around 75 to 76 US cents.
"We haven't seen a lot of excitement in the Aussie dollar so far," Dr Oliver said.
"But later in the year if the US feds keep raising interest rates and the RBA continues to leave interest rates on hold, then it might break down."
