All eyes on wages and employment data

Australia's key wage indicator will be watched closely for signs wages growth is starting to catch up to sky-high inflation.

The Australian Bureau of Statistics will release its update to the wage price index for the September quarter on Tuesday.

In the June quarter, annual wage growth hit 2.6 per cent and rose 0.7 per cent for the quarter.

But with inflation hitting 7.3 per cent in the September quarter, wages are lagging well behind the rising cost of living.

While workers are desperate for a pay rise, the Reserve Bank is worried about the possibility of a wage price spiral feeding into inflation.

Economists expect to see wages keep ticking up in the September quarter, with CommSec tipping a 0.9 per cent lift over the three months.

The minutes from the RBA's November cash rate decision - due on Tuesday afternoon - will be pored over for signs of the central bank's next interest rate move.

In November, it hiked by another 25 basis points, taking the cash rate to 2.85 per cent.

Also on Tuesday, the ABS will release data on the international arrivals and departures.

On Wednesday, Westpac and Melbourne Institute will drop their leading index that's meant to give a read of economic growth in the next three to six months.

Employment data for October will be posted to the ABS site on Thursday, which will offer some clues about the state of the labour market.

St George economists expect to see around 35,000 jobs added to the economy and the unemployment rate to contract to 3.4 per cent after edging up to 3.5 per cent last month.

Meanwhile, US indices ended Friday sharply higher, extending a rally started the previous day after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with interest rate hikes.

The S&P 500 climbed 0.93 per cent to close the session at 3993.05 points. The Nasdaq gained 1.88 per cent to 11,323.33 points, while the Dow Jones Industrial Average rose 0.10 per cent to 33,749.18 points.

Locally, Australian futures rose 42.00 points, or 0.58 per cent, to 18,569.

The ASX on Friday rallied to its highest level in five months on the signs of US inflation finally cooling.

The benchmark S&P/ASX200 index finished up 194 points, or 2.79 per cent, to 7158, while the broader All Ordinaries gained 204.4 points, or 2.86 per cent, to 7350.1.