Despite a negative start, the Australian share market managed to just scrape into positive territory, ending the trading week on a positive note. The All Ordinaries Index (XAO) gained 1.4pts to 4586.3. The market rose 1.8pct over the week.

Agricultural stocks were among the strongest performers, as grain prices soared. Russia has placed a temporary ban on wheat exports in the wake of its worst drought in 38 years. Shares in AWB (AWB) gained 3.8pct to $1.10 while Graincorp (GNC) was up 3.2pct to $6.37 and PrimeAg (PAG) added 9.3pct to $1.23.

Mining stocks also rebounded in late afternoon trade. Rio Tinto (RIO) which reported its 1H earnings yesterday, added 0.3pct to $73.20 while BHP Billiton (BHP) was up 0.7pct to $41.13. Iron ore miner Fortescue Metals Group (FMG) firmed by 2.1pct to $4.49.

The financial sector eased by 0.6pct as all the majors were sold off. Shares in Westpac (WBC) eased by 1pct to $23.62 while the Commonwealth Bank (CBA) was off 0.7pct to $52.59 and the NAB (NAB) lost 0.6pct to $25.03. Shares in the ANZ (ANZ) fell 0.7pct to $23.05 while Macquarie Group (MQG) is down 1pct to $39.55.

Telstra (TLS) shares rose 0.6pct to $3.31.

The Reserve Bank today released its quarterly Statement on Monetary Policy. The RBA indicated that it has felt no need to dramatically change its forecasts for the coming year. The economy is tipped to grow by 3.25pct over 2010 and 3.75-4pct over 2011 and 2012. Underlying inflation is tipped to be "around 2.75pct over the next year or so, similar to its current rate". Risks to the forecasts are balanced. The RBA says that conditions in the housing market have stabilised but it warns that housing stock is still too low relative to population growth. The RBA says that price pressures were less broad-based last quarter and that businesses outside the mining sector aren't having difficulty in attracting staff. While CommSec sees a risk of a quarter per cent rate hike late in 2010, it is more a risk assumption that an outright forecast. The Reserve Bank is firmly on the interest rate sidelines for now.

The Australian dollar ended the day's trade at US91.68c, £0.5764 and €69.49c.

On the market overall, a total of 1.71 billion shares were traded, worth $4.07 billion. 530 were up, 480 were down and 400 were unchanged.

At 4,30pm AEST on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was at 4529, down 8 pts.

Ahead tonight, US non-farm payrolls data is released in the US. Insurance giant AIG is also expected to post quarterly results.