Australian bond traders have a lot to watch both domestically and internationally this week, according to institutional analysis. The market broadly expects the Fed's FOMC to begin cutting interest rates this week, with the real debate being the size of the cut. A 50-basis-point Fed rate cut could intensify attacks on the Reserve Bank of Australia's hawkish rhetoric, highlighting the RBA's lag behind increasingly dovish global central banks. The RBA has recently faced criticism for its high interest rates "damaging the economy."

Domestically, Australia's September jobs data is due out on Thursday. Economists expect a steady increase in jobs and the unemployment rate to drop to 4.1%.