Australia data storm due in week ahead

SYDNEY (MarketWatch) � The Australian economy will likely grab investor attention in the coming week, with a slew of economic data releases due out, as well as an interest-rate decision from the country�s central bank.

The week starts with the TD Securities monthly inflation gauge for February, due for release on Monday. Last month�s survey showed that prices rose 0.2% in January, a slowdown from December�s 0.5% rise.

Unlike TD Securities, the Reserve Bank of Australia only releases inflation data on a quarterly basis, so the bank�s interest-rate setting committee may be interested in the data ahead of its March meeting on Tuesday.

The RBA is widely expected to keep its key cash rate on hold at 4.25%, all the more so after RBA Gov. Glenn Stevens said in parliamentary testimony late last month that �the setting of policy was about right for the moment.� See report on RBA governor�s comments.

The Australian central bank shocked markets last month by keeping rates on hold, when most analysts had been expecting a quarter-point cut.

Australia�s fourth-quarter gross domestic product and February unemployment figures are due out on Wednesday and Thursday, respectively. Trade data for January is slated for Friday.

Chinese economic data will dominate the end of the week, with consumer- and producer-price inflation data set for Friday, and retail sales, fixed-asset investment and industrial output due later on the same day.

Last month, data showed Chinese consumer prices rose at a faster-than-expected pace in January, as food costs surged ahead of the Chinese New Year.

Chinese consumer prices climbed 4.5% in January compared to a year earlier, exceeding economist forecasts for a 4.1% rise. Prior to January�s spike, prices had been on a softening trend. See report on China�s January inflation.

Meanwhile, South Korea�s central bank is also set to decide on interest rates, with the announcement due Thursday.

While some had projected a rate-cut coming soon, those expectations were lowered considerably after minutes from the Bank of Korea�s last policy meeting showed at least one board member urging a rate hike, rather than a cut, citing already-accommodative policy.

And with data out in the past week showing South Korea swinging back to a trade deficit as exports rebounded sharply, the likelihood of a cut to the 3.25% policy rate has faded significantly.