RBA Rate Decision Hinges on Australia Employment Report

Next week is relatively quiet in terms of domestic data releases, but there are some key events to watch. The new home sales report on Thursday is expected to show a partial recovery in August, with sales rising 2.6% to a pace of 623K after a sharp decline in July. This would be partly due to builder incentives remaining in place and conditions not worsening materially during the month.

Abroad, attention will be focused on Australia's employment report, which is expected to show a rebound in hiring after July's decline. A stronger-than-expected report could support the Reserve Bank of Australia's (RBA) decision to raise the Cash Rate by 25 bps in September.

Banxico's monetary policy meeting will also be closely watched, with expectations that the policy rate will remain unchanged at 6.50%. However, policymakers may signal a shift in tone following the Fed's recent rate hike, which could have implications for Mexico's economic outlook.