The Australian market is set for a strong start on Monday with the ASX futures up 0.5 per cent after the US Republicans agreed on details of the tax cut package on Friday night..
Australian investors will be watching the Government’s Mid-Year Fiscal and Economic Outlook (MYEFO) which will be presented on Monday.
The expectation is for a reduction in the Budget deficit and Treasurer Scott Morrison possibly even bringing forward the return to an underlying cash surplus to 2019-20.
Tuesday will see the release of the minutes from the Reserve Bank of Australia’s last board meeting.
The minutes are expected to show the RBA remains guardedly optimistic about the economy without seeing any need to raise interest rates.
US and global markets will also be focusing on whether Donald Trump’s tax package will be wrapped up by Congress this week before year-end.