Australian stocks are expected to rise about 1.5 per cent to kick off a week where jobs figures and Chinese economic data could hold sway.
The benchmark S&P/ASX200 index (5919.2 points) and the All Ordinaries index (6036 pts) both closed down about 0.6 per cent on Friday, partly due to Victoria's record number of new coronavirus cases.
But the futures index points to a 90-point rise on Monday after Wall Street was buoyed by news coronavirus drug remdesivir could reduce the risk of death in severely sick patients, AMP Capital chief economist Shane Oliver says.
The market has bobbed around the 6000-point mark for six weeks and the coming week appears likely to be the same, he said.
"On the one hand, there is lots of stimulus, low-interest rates, hopes for some sort of treatment helping the market," Dr Oliver told AAP on Sunday.
"On the other hand, there's still a rise in the number of new cases, an accelerating rise in Australia's cases, and worries about what that means for the economic outlook."
The Dow Jones rose 369.21 points, or 1.44 per cent, to hit 26,075.30 on Friday, while the tech-heavy Nasdaq set another record high, finishing 0.66 per cent up to 10,617.44.
The Aussie dollar, which closed on Friday at 69.51 US cents, also appears stable with high iron ore prices and a weak US dollar offsetting worries of an expanding Australian shutdown.
Chinese economic data, due for release on Thursday, is expected to show a significant bounce back in GDP, with possible growth in the June quarter year-on-year.
"That's relevant for us because if the Chinese economy is rebounding strongly then it supports demand for our commodities," Dr Oliver said.
June job figures are expected to show a small rise in the number of people in work and, conversely, a higher unemployment rate.
One reason for the seemingly contradictory data was a large number of people were returning to the jobs market after giving up when the lockdown started, Dr Oliver said.
Some dole recipients have also seen the return of their "mutual obligation" condition, requiring them to look for work.
Westpac's monthly consumer confidence index is due for release on Wednesday after surveys were conducted in recent days.
"I suspect it will show a fall because of all the bad news about coronavirus in Australia," Dr Oliver said.