Another volatile week is forecast for the Australian sharemarket, with the US fiscal impasse set to dominate.

AMP Capital Investors chief economist Shane Oliver says although there have been positive signs of a compromise coming out of the United States, there seems some way to go before the situation is resolved.

Dr Oliver says the futures index points to a gain in early Monday trading, but much rides on what happens in Washington.

"Unless we get clear evidence of some sort of progress by US politicians by (Monday) morning, I suspect we will still probably be up, but it may be relatively modest," he said.

Locally, the Australian Bureau of Statistics (ABS) will release housing finance data for August on Monday.

Dr Oliver expects a modest pullback in new housing finance after several months of gains.

"Those figures could come in on the soft side but I think the broader picture about housing finance is still a run of recovery," he said.

"Auction clearance rates for Saturday in Sydney and Melbourne remain strong.

"It still looks like it is hanging around the 80 per cent level, which is a pretty solid number and shows ongoing demand for mortgages."

Minutes of the Reserve Bank of Australia monthly board meeting will be released on Tuesday.

The RBA left interest rates on hold two weeks ago, but past minutes have revealed it still has an inclination to cut them in future.

"If the easing bias is also referred to in the minutes that should provide a bit of an upward push to the Aussie dollar," Dr Oliver said.

Later in the week, attention will turn to the resources sector with BHP-Billiton to release a quarterly production report on Wednesday, and data coming from China on Friday.

 

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