Global Economy Braces for Tumultuous Week Amid Rising Inflation Concerns

The global economy is bracing for another tumultuous week as the US Federal Reserve faces pressure to raise interest rates in response to rising inflation. The RBA policy rate decision on Tuesday is expected to raise the rate by +25 bps to 4.60%, widening the differential with New Zealand.

Australia's household spending data, August CPI update, and building permit data will also be released this week. In contrast, New Zealand will focus on consumer and business sentiment updates, as well as the RBNZ data dump at the end of the month.

The US September non-farm payrolls report is expected to show a +100,000 increase, although its credibility has been undermined by internal factors. Other key releases include personal income and spending data, labor market numbers, and the PMI report.

In China, attention will be on the September PMIs, which are expected to indicate a modest improvement in manufacturing and services activity. The country's National Day holidays will see markets closed from October 1 to 7.