Australian shares seen higher despite tepid Wall Street close

The news: The Australian sharemarket is set to shrug off a mixed close for Wall Street on Friday as local traders focus on an important inflation reading this week to determine the path for interest rates.

The numbers: The Dow Jones index closed 0.16% higher on Friday, but the broader S&P 500 was dragged into the red, down 0.07% while the tech-heavy Nasdaq also ended 0.36% lower. In the local market, ASX 200 futures were trading 14 points or 0.19% higher at 7553 points at 7:00am AEDT on Monday.

The context: A bleak revenue forecast by Intel put pressure on the S&P 500 and Nasdaq, although all three major US indices ended higher for the week. A US Commerce Department report showed the personal consumption expenditure index - the Federal Reserve's preferred inflation gauge - rose moderately in December but the annual increase in inflation was below 3% for a third straight month, bolstering the case for rate cuts this year. Local investors would be hoping for a similar outcome when December quarter inflation is released on Wednesday, which could determine whether the Reserve Bank will lift rates again or not.