Shares lift as RBA holds fire, oil holds onto gains

The Reserve Bank of Australia left its cash rate unchanged at 4.35%, a decision that was widely anticipated. The Australian share market ended higher on Tuesday, though a rally that followed the announcement faded by the close, according to traders.

Oil prices held onto recent gains, supported by ongoing supply concerns and steady demand. The energy sector contributed to the market's advance, with major producers edging up. Brent crude remained above $81 a barrel, while the Australian dollar traded in a narrow range near 67 U.S. cents.

The RBA's statement noted that inflation is easing but remains above the target band. The bank gave no clear signal on the timing of a potential rate cut. Markets currently price the first reduction in early 2026.

The next catalyst for the currency and rates market is Thursday's employment data, which may shift the near-term outlook.