Steady gains continue on ASX

The ASX200 added another 0.7% this week to close on its highs before the Australia Day holiday, at 4,271.

Forsyth Barr notes, “ Trading volumes remain light in typical January fashion and around public holidays, and are expected to return to normal conditions next week to reposition ahead of the February reporting season.

“ The Aussie dollar has continued to gain against the Greenback, closing just shy of $1.06 and looking to test 2011 highs despite a downward trajectory of interest rates.

“Confession season has been pleasingly quiet this week even among widespread production reports from the energy and materials sectors.

“If the Aussie dollar moves much further north, that will further cloud the already vague outlook comments delivered by management come reporting season. With the US reporting season progressing well and most of Asia quiet for the new lunar year, all eyes are on Europe not to disappoint.”

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