The local share market has finished flat ahead of the unveiling of the federal budget and the latest set of US inflation figures.
The benchmark S&P/ASX200 index on Monday finished up one point at 7,750.0, while the broader All Ordinaries dipped 3.3 points at 8,019.4.
Treasurer Jim Chalmers will hand down his third budget on Tuesday night, and IG market analyst Tony Sycamore said a key question for markets would be whether the blueprint contributes to Australia's inflation problem or is part of the solution.
"Specifically, can the government utilise its strong fiscal position to strike the right balance between providing cost-of-living relief without inflaming sticky inflation?" Mr Symcamore wrote.
Then on Wednesday night, Australia time, the US Labor Department will announce last month's consumer price increases, with annual inflation tipped to have fallen modestly.
Past readouts have driven markets globally as they are seen as a key factor in determining the pace of rate cuts this year. A number of Federal Reserve officials including chairman Jerome Powell are also scheduled to speak this week.
Meanwhile, NAB's monthly business survey of 400 firms released on Monday found that conditions eased in April, with trading, profitability and employment all back around their long-term averages.
"Overall, these signs of slowing activity and easing costs support the outlook for gradual improvement in inflation from here, but how quickly this occurs remains to be seen," said NAB's chief economist Alan Oster.
The ASX's 11 official sectors finished mixed on Monday, with three down, three up, and five basically flat, including the heavyweight mining and financial sectors.
ANZ dropped 3.0 per cent to $28.21 after the bank confirmed media reports that the Australian Securities and Investments Commission was investigating whether the bank's traders manipulated the sale of government bonds last year.
"ANZ takes compliance with its regulatory obligations seriously and is co-operating fully with ASIC," ANZ said.
The other big retail banks finished in the green, with Westpac adding 0.1 per cent to $26.68, NAB rising 0.7 per cent to $34.04 and CBA growing 1.3 per cent to $119.12.
In the mining sector, BHP rose 0.8 per cent to $43.25, while Fortescue dropped 0.6 per cent to $26.05 and Rio Tinto fell 0.8 per cent to $129.04.
Lithium companies had a down day, with Pilbara dropping 1.5 per cent, Liontown retreating 1.1 per cent and IGO finishing 3.3 per cent lower.
Lendlease fell 2.9 per cent to a two-and-a-half month low of $6.10 after the developer announced the Australian Tax Office had assessed it $112.1 million in capital gains and interest related to the partial sale of its retirement living business in 2017/18.
Lendlease is disputing the $24.5 million in interest, saying the ATO told it in writing in 2020 that the agency wouldn't apply interest or penalties to the 2018 financial year.
Fletcher Building plunged 10.9 per cent to a more than two-decade low of $2.87 after New Zealand's biggest building company cut its 2023/24 earnings guidance, saying market conditions in Australia and New Zealand had weakened throughout the financial year.
In Australia - where Fletcher sells building products such as insulation, plasterboard, steel roofing and plastic piping - Fletcher said there had been a sharp correction in the residential market, which it expects will lead to a 10 per cent decline in revenue for its Australian division.
The Australian dollar was buying 65.98 US cents, from 66.12 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday closed up one point, or 0.01 per cent, at 7,750.0
* The broader All Ordinaries dipped 3.3 points, or 0.04 per cent, to 8,019.4.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.98 US cents, from 66.12 US cents at Friday's ASX close
* 102.81 Japanese yen, from 102.85 Japanese yen
* 61.26 Euro cents, from 61.34 Euro cents
* 52.67 British pence, from 52.73 pence
* 109.80 NZ cents, from 109.69 NZ cents.
