At a press conference alongside Prime Minister Scott Morrison, President Trump described China as a “threat to the world”.
He said he would need a “complete deal” from China if they wanted to settle their protracted trade dispute. The Chinese retaliated by cancelling a planned US farm visit.
Futures suggest the benchmark ASX200 will rise by just 2 points, or .03 per cent, at open on Monday morning.
“Our market has been a bit more resilient to some of the trade war talk out the US but it will still have a small impact,” Dr Oliver said.
Closer to home, analysts’ eyes will be keenly trained on the Reserve Bank Governor Philip Lowe’s speech in Armidale in northwestern New South Wales on Tuesday night.
The speech, titled ‘An Economic Update’, is expected to indicate whether the RBA plans to cut interest rates again next week.
Dr Oliver said he wouldn’t be surprised by another rate cut due to persistent softness in the Australian economy.
“The housing pick up in Sydney and Melbourne may be viewed as a reason to keep rates on hold along with the 10 million Australians who have received their tax cuts, we’re yet to see the full impact of that,” he said.
“But unemployment is rising and the RBA wants it to fall. Global growth uncertainties have increased. We’re still a long way from meeting the inflation target. Business surveys are pretty subdued.
“There is a longer list of reasons to cut than to leave rates on hold at this point in time”
Business surveys and Australian job vacancy figures will be released on Monday and Thursday respectively.