Here’s how the NAB explained the sharp improvement last month.

Attention switches to the US and China this week, especially bank earnings in America with two majors to reveal second quarter numbers that will impact market sentiment that has turned fragile.

As we said, so far it’s been a fairly gentle slowdown in Australia with none of the brutal job shedding seem in the US or off the cliff crashes in demand and output.

The focus will be on Australia given the Reserve Bank’s meeting tomorrow on rates, the June employment figures Thursday, housing finance and the ANZ job ads survey later today.