ASX set for cautious start ahead of RBA rate decision

The news: The Australian sharemarket is set to open weaker as investors stay cautious ahead of a monthly board meeting where the Reserve Bank is expected to keep rates on hold.

The numbers: US markets were closed for a Labor day holiday, while the pan-European STOXX 600 index ended barely changed at 457.96 points. In the local market, ASX 200 futures were trading 19 points or 0.26% lower at 7277 points at 0700 AEST on Tuesday. The RBA is expected to hold its cash rate at 4.1% later on Tuesday.

The context: US investors will be watching for fresh trade and services data later this week that could indicate the Federal reserve’s future course of action. In the local market, traders are set to remain cautious, with a weaker GDP reading expected for the June quarter on Wednesday.