Last week we saw some weakness in the market as the oil price moved around and base metals prices were hit hard in the middle of the week. As you can see from the below chart we have maintained our trading range. Given the amount of information out this week I expect the market to maintain a wait and see position this week.
This week we have a lot of news. Monday we’ll get a taste of first quarter company profits, first quarter inventories, April retail sales and the Securities Melbourne institute inflation gauge. Tuesday the Reserve Bank will make a rates decision and although there is growing consensus that we will see more rate hikes in the future we expect rates to be left on hold tomorrow.
Wednesday it is first quarter GDP and Thursday wraps up the April Trade balance. Across the sea we will also hear on employment numbers out of the U.S. and interest rates in the U.K. and Europe. This will give us a good guidance on where we are post sub prime.
Until next week.