ASB chief economist Nick Tuffley said yesterday dairy prices were expected to take a breather following strong gains over the previous four auctions.
Whole milk powder futures were indicating a ''largely flat'' result. However, skim milk powder and anhydrous milk fat futures prices hinted at modest gains.
''All up, we expect the GDT price index to post a lift in the 0% to 5% range. Dairy prices shot up a further 9.9% at the last auction on October 6, building on strong gains at the three prior auctions.''
Whole milk powder prices were up more than 80% in the same period, he said.
New Zealand's net immigration inflows remained at an extremely high level and were showing no signs of moderating. High inflows and low outflows were combining to give net inflows of close to 5000 people each month.
Strong net migration inflows were helping support robust levels of consumption but were also adding workers to the labour market, helping to keep a lid on wage inflation.
The ASB expected the pattern of the past year to remain in place at least for the next three months, Mr Tuffley said.
Craigs Investment Partners broker Chris Timms said the peak of the United States reporting period started this morning with results so far being solid.
Of the 58 S&P500 companies reporting so far, 68% had beaten market earnings forecasts.
There are 110 S&P500 companies due to report this week, including technology heavyweights IBM, Yahoo, Microsoft and Google/Alphabet and consumer stocks Coca-Cola and Procter & Gamble. Other companies due to report included Harley-Davidson, 3M, GM and Caterpillar.
Also in focus were reports on the United States real estate market.
The housing market index, due today, was followed by housing starts tomorrow and existing home sales as well as the house price index on Thursday.
Expectations for a US interest rate increase this year had dropped in recent weeks amid disappointing reports on manufacturing weighing on upbeat reports from the jobs market and the US consumer.
''We've seen a general strengthening on the consumer side but businesses are still being very cautious and defensive,'' Mr Timms said.
While the economic calendar was sparse, there would be plenty of annual meeting speeches and trading updates to consider for New Zealand and Australian companies this week.
In New Zealand, some of the companies holding annual meetings included Genesis Energy, Sky TV, Auckland Airport, Port of Tauranga and Vector.
In Australia, the market would hear from Crown, Medibank, Amcor and Qantas.
