The ASX Today

The ASX is indicating it could continue rising this morning on the back of Friday's favourable events and slow news flow over the weekend. 

ASX SPI 200 Futures traders have added just five points to Friday afternoon's close. This follows the ASX climbing for the better part of last week to finish its last session above 5900 points for the first time since early May. 

It seems the market may move without a significant catalyst until Wednesday at least, when consumer prices are released for the September quarter. Strategists have noted this is the critical number in the debate about what the RBA might or might not do with rates.

KEY POINTS

• No major data released today
• Big miners finish mixed in overseas listings, set up for a mixed opening
• Iron ore gains 2.6 per cent to $US62.46 a tonne
• Oil stocks look supported (BHP, Woodside, Origin) by a 1.2 per cent lift in Brent crude to $US57.90 a barrel
• ABC Census data and CommSec State of the States published 

The big banks may be the best hope for any real swing to the upside before Wednesday, in anticipation of their full-year reporting season which starts on Thursday. Financials were strong last week in addition to utility and consumer staple stocks (which could be most affected by CPI on Wednesday). 

News broke around Friday lunchtime AEDT that the US Senate had approved the Federal Budget, which clears another hurdle for the widely discussed President Trump tax cuts. It means Republicans can now pass the tax blueprint based on their majority votes with no input needed from the Democrats. 

While news coming out of the US and the world is largely supportive of the ASX, there is no local economic stimulus driving this current rally which suggests it could run out of steam. The idea the ASX has too far extended its rally is gathering momentum among market strategists.

In addition to iron ore and oil finding support in the most recent session, nickel prices hit a six-year high. It hit $US12,165 before abating to $US11,735 a tonne.

The Australian dollar is buying around US78.18c this morning. The US dollar rallied 0.4 per cent late Friday so US-exposed stocks could see further support this morning.

And while it's less critical to markets, CommSec has released its State of the States report this morning. The quarterly report revealed NSW is still the leading economy, but Victoria is quickly closing in. Victoria takes the leading position on population growth and construction work, while NSW leads on retail trade, dwelling starts, and now also equipment investment and unemployment.

The Australian Bureau of Statistics (ABS) will also release a host of Census data later today including employment, providing a check on the accuracy of the monthly labour market surveys.