The local share market has finished in positive territory at the start of a busy shortened week filled with macroeconomic risk events.
The S&P/ASX200 was slightly in the red for much of Tuesday morning following the three-day weekend but closed on the high of the day, up 16.4 points, or 0.23 per cent, at 7,138.9.
The broader All Ordinaries gained 16.8 points, or 0.23 per cent, at 7,329.1.
JP Morgan's head of international market intelligence Krupa Patel said global markets were rising after the People's Bank of China on Tuesday cut a short-term borrowing rate known as the seven-day reverse repo rate.
The move raised hopes that the central bank would also slash rates on its medium-lending facility on Thursday, following signs of a weak recovery from COVID-19 lockdowns for the world's second-largest economy.
Closer to home, markets were digesting a sharp lift in unemployment expectations, as reported in the Westpac-Melbourne Institute Australian Consumer Confidence Index figures for June.
Some 6.6 per cent of workers expect to lose their job, the highest level since September 2020 in figures that suggest the country's unemployment rate could rise sharply this year.
NAB's monthly business survey also released on Tuesday showed business conditions continued to ease in May, with drops across its trading, profitability and employment components.
"That said, conditions remain above average, reflecting just how strong the economy was through 2022," NAB chief economist Alan Oster said.
The ASX's 11 official sectors were mixed on Tuesday, with tech again the biggest gainer, climbing 3.8 per cent. Wisetech Global rose 5.2 per cent to an all-time high of $79.81 while Xero added 4.2 per cent to an over one-year high of $113.62.
The heavyweight mining sector dropped 0.8 per cent, with BHP closing down 1.0 per cent to $44.29, Rio Tinto falling 1.5 per cent to $112.88 and Fortescue Metals basically flat at $20.80.
Mineral Resources dropped 2.7 per cent to $67.92 after a fatality at the diversified miner's Ken's Bore iron ore mine in WA, part of the huge Onslow Iron project.
The Big Four banks all finished higher, with CBA up 0.8 per cent to $96.52, Westpac up 0.3 per cent to $20.30, ANZ up 0.4 per cent to $22.93 and NAB edging 0.1 per cent higher at $25.22.
Macquarie gained 2.1 per cent to $175.66.
Domino's Pizza Enterprises closed down 5.9 per cent to a more than four-year low of $43.55 after the fast food giant reported that its attempt to rebound from a drop in sales reported in February had not yet been successful.
In response, the company intends to close its 27 stores in Denmark along with 65 to 70 other underperforming corporate-owned stores as part of a bid to cut costs by around $55m a year.
The Australian dollar meanwhile was at a five-week high against the greenback.
The Aussie was buying 67.87 US cents, from 67.14 US cents at Friday's ASX close.
Looking forward, later on Tuesday night, Australia time, the US Labor Department is set to release closely watched Consumer Price Index data for May, with consensus expectations predicting it will show inflation slowing from 4.9 per cent to 4.1 per cent.
The data will be the last bit of crucial information the Federal Open Market Committee (FOMC) receives before its two-day meeting this week.
The Fed will announce its latest decision on interest rates in the pre-dawn hours of Thursday Australian time.
Corpay APAC currency strategist Peter Dragicevich wrote that while keeping rates on hold was the most likely decision, another rate rise could not be ruled out.
Australian employment figures for May will be released later on Thursday.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 16.4 points, or 0.23 per cent, at 7,138.9.
* The broader All Ordinaries rose 16.8 points, or 0.23 per cent, to 7,329.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.87 US cents, from 67.14 US cents at Friday's ASX close
* 94.68 Japanese yen, from 93.62 Japanese yen
* 62.83 Euro cents, from 62.32 Euro cents
* 53.99 British pence, from 53.48 British pence
* 110.25 NZ cents, from 110.12 NZ cents