Australian shares are expected to commence trading on a positive note, with the potential to fully recover the ground lost over two consecutive weeks of decline.

Before Monday's opening bell, local share index futures have advanced by 0.6%, indicating a higher start for the S&P/ASX 200 index at the beginning of the new trading week.

The benchmark index fell 0.1% last week and has declined a total of 0.5% over the past fortnight.

Ahead of the market open, diversified miner South32 Ltd (ASX: S32) announced that production for several of its key commodities exceeded its annual guidance.

Investors this week are likely to focus on the unemployment data for June, scheduled for release on Thursday, as it could influence the Reserve Bank of Australia's considerations regarding interest rates.