Frydenberg FOFA banking royal commission
Treasurer Josh Frydenberg (Image: AAP/Lukas Coch)

The Australian government -- and the nation's economists -- will have eyes on one thing this week: the Australian Bureau of Statistics July labour force data, which is dropping on Thursday at 11.30am. The numbers have rarely come out at a more crucial time, and an enormous amount depends on them.

The Reserve Bank of Australia (RBA) is in the middle of an axe-swinging frenzy, hacking at interest rates. It has cut them from record lows down, ever further, into the dark uncharted territory near zero. This has, in turn, sparked wild depreciation of the Australian dollar, speculation about what will happen if interest rates hit zero, record-breaking falls in bond yields, extremely cheap mortgages and dramatic sharemarket volatility.