AAP
The Australian share market is expected to open higher when trade resumes on Monday after a better than expected US jobs report eased concerns about the American economy.
The Australian share price index contract for September is tipping the local market to open 50 points, or 1.1 per cent higher on Monday after Wall Street finished higher on Friday.
Private employers in the US added 67,000 jobs during August, above market forecasts, while the unemployment rate rose 0.1 percentage points to 9.6 per cent, the US Department of Labor said.
The broad based S&P 500 index added 1.32 per cent on Friday for a 3.75 per cent increase on the week ending September 3.
"There was a lot of relief for our investors after US employment came in above expectations on Friday night, while fears of a double dip recession have eased for now," CommSec chief economist Craig James said.
"The strength in equity markets in the US and Europe is pointing to a good day on our market."
Investors would wait for reports on the possible formation of a commonwealth government, Mr James said.
The three independents were expected to announce their decisions on whether the Labor Party or the coalition of the Liberal and National Parties would form a minority government by early this week, two weeks since the federal election.
"Whether we will have a government formed on Monday or not, that is one of the focal points for our market," he said.
Mr James said the rise of the Australian dollar would also be of interest for investors.
The Australian dollar ended New York trade on Saturday morning (AEST) at 91.74 US cents, up 1.01 per cent from the local close of 90.82 US cents on Friday.
With no major corporate news scheduled domestically for the week, the significant economic event for this week is the Reserve Bank of Australia's (RBA) board meeting on monetary policy on Tuesday.
Also, the Australian Bureau of Statistics' is due to release the labour force report for August on Thursday.
All 15 economists surveyed by AAP last week said they expected the central bank to leave the cash rate at 4.5 per cent for a fourth consecutive month.
"The Reserve Bank has got no reason to touch interest rates, so that is out of play this week," Mr James said.
"The US markets, the election and the Aussie dollar will be key influences on Monday."
