The S&P/ASX 200 index is expected to open firmly higher, with investors positioning for a week packed with critical financial releases including the Reserve Bank of Australia's (RBA) latest interest rate decision.

Australian equities are set to draw support from Wall Street's strong finish on Friday, when the S&P 500 closed at a record high. The rally came after the July US jobs report showed the economy lost just 23,000 positions last month — significantly fewer than analysts had forecast — easing concerns about the trajectory of future US interest rate increases. Australian markets frequently take directional cues from the US, and the positive Wall Street lead provides a constructive backdrop for local sentiment heading into a domestically eventful week.

Domestic Focus: Banks and the RBA

Several major Australian banks are scheduled to release key updates this week. Westpac will deliver its third-quarter report today, while National Australia Bank (NAB) is set to publish its business confidence review tomorrow. Bank results carry particular weight for the broader index given the financial sector's substantial share of ASX 200 market capitalisation, making these updates a key gauge of both corporate credit conditions and consumer spending trends.

The RBA will announce its latest interest rate decision tomorrow afternoon. Most market commentators expect the cash rate to remain unchanged.

Gold ETFs Reverse Outflows in July

Globally, physically backed gold exchange-traded funds (ETFs) attracted US$3 billion in inflows during July, reversing two consecutive months of outflows, according to the latest World Gold Council (WGC) "Goldhub" newsletter. Gold ETFs are widely tracked as a barometer of institutional sentiment toward the precious metal, as they allow investors to gain gold exposure without holding physical bullion.

The WGC reported that demand was broad-based across all regions, led by Europe. Positive flows combined with a higher gold price lifted total global gold ETF assets under management (AUM) by 1% to US$530 billion. Collective holdings increased by 23 tonnes to 4,068 tonnes. The renewed inflow trend coincides with a gold price of $4,343.43 per ounce recorded in the latest commodity session, underscoring sustained investor appetite for the metal.

AI-Related Debt Issuance Nears US$500 Billion in 2026

Goldman Sachs estimates that companies have issued nearly US$500 billion in AI-related debt so far in 2026, with additional issuances likely on the horizon, according to Goldman Sachs Research. The surge reflects the enormous capital requirements of building data centres, AI compute clusters, and associated energy infrastructure at scale.

Hyperscalers — the largest US technology companies — have accounted for 40% of AI debt issuance this year. Amanda Lynam, head of credit strategy research at Goldman Sachs, said these firms could raise an additional US$2 trillion in debt while maintaining their investment-grade ratings.

However, with investment-grade credit markets unlikely to absorb that volume, Lynam posed the critical question: "the bigger question is: What markets fill the void?" The financing challenge underscores how AI infrastructure build-out is reshaping capital markets globally, with implications well beyond the technology sector.

Currency and Commodities

In foreign exchange markets, the Australian dollar is trading at US$0.706.

Commodity markets, denominated in US dollars, showed the following movements:

• Iron Ore: down 0.87% to $94.45 per tonne
• Brent Crude: up 1.29% to $83.55 per barrel
• Gold: $4,343.43 per ounce
• US Natural Gas futures: up 1.06% to $2.6901 per MMBtu

Iron ore remains Australia's largest goods export by value, and its price movements directly affect major miners such as BHP, Rio Tinto, and Fortescue — among the ASX 200's biggest constituents — making commodity sessions a key input for resources-heavy Australian indices.

ASX New Listing: Elk Range Mining

Elk Range Mining (ASX:ELK), admitted to the official ASX list on Thursday, 6 August, will commence quotation of its securities at 12:00 PM AEST today. The company raised $10,000,000 through its initial public offering (IPO), with proceeds earmarked for advancing its Idaho gold project.

Elk Range said it has consolidated a strategic land position alongside an extensive historical geological and drilling database, providing a foundation for systematic exploration and resource growth.

The company is led by non-executive chairman Campbell Baird, who brings more than 30 years of experience in the Australian and global mining industry, and CEO Edward Keys, who has over 20 years of experience in mineral exploration, resource growth, and project development across Australia and North America.

Other Corporate Developments

• Infratil (ASX:IFT) has unveiled a New Zealand data centre initiative with Contact Energy, located in Taranaki. The project is a tangible example of the infrastructure investment underpinning the AI build-out cycle, connecting the local corporate landscape to the global surge in data centre development flagged by Goldman Sachs Research.
• Caspin Resources (ASX:CPN) has identified regional discovery opportunities at its Kelpie project.
• West Cobar Metals (ASX:WC1) is advancing its Salazar scandium development pathway.
• Stavely Minerals (ASX:SVY) has released a robust scoping study for its Stavely gossan project.