While the interest rate in Australia remained at a historic low of 0.1% the accompanying statement showed the policymakers remain committed to maintaining highly supportive monetary conditions.

The ill-timed surprise resignation of the NSW Premier on Friday have also added to uncertainty in Australian markets.

The home value index is most awaited by traders this week as it is expected to show the impact of ongoing lockdowns on property prices.

With US markets also turning south on President Biden’s plan to raise corporate taxes by 5.5% to 26.5%, there may be some weakness in Australian markets when the week opens.

All industry sectors ended in red for Australia with heavyweights mining, bank and oil stocks pulling down the market.

Gold rose for a fourth consecutive week to reach its highest price in two and a half months as a slower than expected US jobs data in August drove the US Dollar lower.

The Australian Bureau of Statistics has also unsurprisingly reported a 2.7% seasonally adjusted fall in retail turnover in July, the biggest monthly fall this year

With housing prices in Australia starting to suffer as a result of lockdown and the Chinese economy slowing down the Aussie is expected to fall further.

With more bumper payments expected, analysts believe it will be about time that the payout finds its way back to the markets.

The RBA positively surprised investors by stating that Australia will avoid another recession, despite lockdowns imposed because of rising Coronavirus cases.