A Big Week Ahead for Australian Markets: What to Watch
Market internals improve, but market breadth a challenge
The Australian market is set for a big week ahead, with investors awaiting the release of key economic data and central bank decisions.
“The Australian market is set for a big week ahead,” said Michael Hewson, chief market analyst at CMC Markets. “Investors will be closely watching the release of key economic data and central bank decisions.”
Economic data
On the economic front, investors will be closely watching the release of the following data:
- Retail sales: The ABS is expected to report that retail sales rose by 0.4% in April, following a 0.2% increase in March.
- Employment: The ABS is expected to report that employment rose by 25,000 in May, following a gain of 23,000 in April.
- Building approvals: The ABS is expected to report that building approvals rose by 1.0% in April, following a 1.1% increase in March.
Central bank decisions
The Reserve Bank of Australia (RBA) is scheduled to hold its monthly board meeting on Tuesday. The RBA is widely expected to keep interest rates on hold at 0.1%.
The Reserve Bank of New Zealand (RBNZ) is also scheduled to hold its monthly board meeting on Wednesday. The RBNZ is widely expected to raise interest rates by 0.50%.
Market internals
The Australian market has been on a tear in recent weeks, with the S&P/ASX 200 index rising by more than 10% since the start of the year.
The rally has been driven by a number of factors, including strong corporate earnings, improving economic data, and expectations of further monetary stimulus from the RBA.
However, the market has shown signs of slowing down in recent days, with the S&P/ASX 200 index closing lower for three consecutive days.
The slowdown in the market has been due to a number of factors, including concerns about rising inflation and interest rates, and the ongoing war in Ukraine.
“The market internals have improved in recent weeks, but market breadth remains a challenge,” said Shane Oliver, chief economist at AMP Capital. “This has led to concerns that the market is overbought and that a correction is on the horizon.”
Market breadth
While the Australian market has risen sharply in recent weeks, market breadth has been a challenge.
The number of stocks that have fallen in price has outpaced the number of stocks that have risen in price.
This has led to concerns that the market is overbought and that a correction is on the horizon.
Technical analysis
The technical indicators for the Australian market are mixed.
The S&P/ASX 200 index is trading above its 50-day moving average, which is a bullish signal.
However, the index is also trading near its all-time high, which could be a sign that the market is due for a correction.
“The technical indicators for the Australian market are mixed,” said Chris Weston, chief market analyst at Pepperstone. “The S&P/ASX 200 index is trading above its 50-day moving average, which is a bullish signal. However, the index is also trading near its all-time high, which could be a sign that the market is due for a correction.”
Conclusion
The Australian market is set for a big week ahead. Investors will be closely watching the release of key economic data and central bank decisions. The market is also likely to be sensitive to developments in global markets.
Here are some additional thoughts on the Australian market:
- The market is likely to remain volatile in the near term, as investors continue to weigh the risks and rewards of investing in Australia.
- The market is likely to be supported by strong corporate earnings and improving economic data.
- However, the market could be weighed down by concerns about rising inflation and interest rates, and the ongoing war in Ukraine.
Overall, the Australian market is a good long-term investment, but investors should be prepared for some volatility in the near term.
