Morgan Stanley Research previews Australia Q2 GDP report due on Wednesday.

"We expect GDP for Q2 to increase 0.5%Q, with annual growth slowing from 2.5% to 2.1%Y. This would be consistent with growth around trend rates, but only very modest per capita growth. We expect relatively broad contributions across categories. Consumer spending growth is expected to be similar to the prior quarter, with modest growth - a solid outcome given some of the income headwinds in the quarter," MS notes.

"Investment growth slowed sharply in the quarter although this entirely reflected a reversion of data centre machinery spending, the vast bulk of which was imported. We expect an offsetting positive contribution from trade (net exports+0.4ppts), with underlying capex trends still quite positive. Government spending is also expected to be a contributor to growth," MS adds.