Preparing for tomorrow’s Federal Budget

The much improved mood on global markets today, set up in part by China’s decision to cut its official rate, has helped the ASX enjoy a broad relief rally in early trade, with miners in particular enjoying a lift. In terms of technical levels, this improvement has helped the ASX/S&P 200 to finally find some strong support at 5,579 points, after having a sharp sell off last week. Ahead of tomorrow’s federal budget presentation on behalf of the Australian Government, Saxo Capital Markets expects the ASX to remain in positive territory. US market leads and the positive mood created by China’s interest rate cut should be strong enough to keep Australian shares up. Resistance level remains as before. To read more visit: (VIEW LINK)