THE Australian share market is expected to open firmly in the black tomorrow when the local bourse reopens after the Queen's Birthday long weekend.
CMC Markets foreign exchange dealer Tim Waterer said positive trading in Asian marketstoday and on Wall Street on Friday bode well for the Australian market.
"We expect the Australian market to open in well positive territory tomorrow, notwithstanding the (performance on) US markets tonight," Mr Waterer said.
"It's been a particularly strong day on the Asian bourses, with the Nikkei up 1.8 per cent."
At 5.17pm (AEST)today on the Sydney Futures Exchange, the June share price index futures contract was 23 points higher at 4549 points.
Mr Waterer said a key focustomorrow would be the minutes of this month's Reserve Bank of Australia (RBA) board meeting, due for release at 11.30am (AEST).
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Later tomorrow, RBA deputy governor Ric Battellino is scheduled to address the Financial Executives International of Australia conference.
Mr Waterer said the RBA was expected to keep interest rates on hold for the time being after leaving the cash rate unchanged at 4.5 per cent on June 1.
It still sought to increase interest rates later this year as the global economic recovery remained on track, however.
"With the increase in volatility in markets that we've seen, particularly in the past month, the RBA did tone down some of its comments regarding the interest rate cycle," Mr Waterer said.
"And that was a smart thing to do given the events in Europe.
"The RBA is, over the course over the year, expected to hike interest rates a few more times but we could see a bit more space between those hikes, as opposed to the fast pace that we started out the year at.
"At the moment, everything is looking rosy in our backyard ... but they can't take that in isolation.
"The US seems to have turned a corner but there is still a cloud over it."
On Wall Street on Friday, the S&P500 index climbed 0.44 per cent to end the week up 2.5 per cent, the largest weekly gain since March.
The Dow Jones Industrial Average closed the week up 2.8 per cent, after rising 0.38 per cent on Friday.
This was despite figures showing US retail sales fell 1.7 per cent in May, the first decline in consumer spending since September and well below market expectations of a small rise.
Market players were instead buoyed by a private sector survey that showed an improvement in consumer confidence and positive results from National Semiconductor, which makes parts used by Apple and Research In Motion.
Stocks slide on weak jobs reportDollar higher on back of strong stocks
