Index Update: The Australian sharemarket closed higher on Tuesday, with the S&P/ASX 200 Index gaining 53.80 points, or 0.60%, to finish at 8,947.80—a new 20-day high. Sentiment improved as markets scaled back expectations of an August interest rate increase after Reserve Bank of Australia Governor Michele Bullock indicated that the housing market had softened more than anticipated. The index has gained 1.76% over the past five trading sessions and remains 2.77% below its 52-week high.

Nine of the 11 sectors ended in positive territory. Consumer Discretionary led the advance, rising 2.68% and recovering from its recent decline, although the sector remained 0.60% lower over the past five sessions. Telecommunication Services gained 2.55%, followed by Health Care at 2.26% and Energy at 1.60%. Materials was the weakest sector, falling 1.36%.

Macro Update: Reserve Bank of Australia (RBA) Governor Michele Bullock said the global economy has become more exposed to supply shocks, while Australia remains better equipped to absorb them than during the 1970s. Inflation is above target, and underlying inflation remains too high despite demand and labour market conditions easing. The housing market has softened more than the RBA anticipated in May, while earlier cash-rate increases are yet to take full effect. Bullock said further moderation in demand growth would likely be required to return inflation sustainably to target. The RBA Board remains prepared to increase the cash rate further if required.

Top Market Movers: Viva Energy Group Limited (ASX:VEA) led the gainers, rising 8.606% to AUD 2.650, followed by WiseTech Global Limited (ASX:WTC), which advanced 8.063% to AUD 34.710. SEEK Limited (ASX:SEK) gained 6.838% to close at AUD 14.060. Among the decliners, DroneShield Limited (ASX:DRO) fell 13.222% to AUD 1.805, Silex Systems Limited (ASX:SLX) dropped 8.351% to AUD 4.500, and Electro Optic Systems Holdings Limited (ASX:EOS) declined 7.517% to finish at AUD 6.890.

Commodity Update: The U.S. dollar edged slightly higher on Monday but remained within a narrow trading range as investors awaited a busy week of central bank policy decisions. Softer crude oil prices helped ease inflation concerns, limiting demand for traditional safe-haven assets. Gold declined 0.65% to USD 4,050.40, silver dropped 1.75% to USD 57.68, and copper slipped 0.51% to USD 13,683.00. Brent crude fell 0.60% to USD 87.85, extending losses as renewed optimism over possible U.S.-Iran talks reduced fears of wider supply disruptions in the Middle East.

Our Stance: The Australian sharemarket advanced on Tuesday, with the S&P/ASX 200 gaining 0.60% to a new 20-day high of 8,947.80 as expectations of an August RBA rate increase eased. Nine sectors closed higher, led by Consumer Discretionary, while Materials declined. Market sentiment improved after Governor Michele Bullock noted that housing had softened more than anticipated, although inflation remains above target and further rate increases remain possible. Meanwhile, gold, silver, copper and Brent crude moved lower. The broad sector participation supported the index’s advance, but persistent inflation and the RBA’s cautious policy stance may continue to shape near-term market direction and volatility.

The S&P/ASX 200 Index advanced 53.80 points in the latest trading session, forming a bullish candlestick pattern that reflects renewed buying interest and improving market sentiment. The broader technical outlook remains constructive, with the index continuing to trade comfortably above its 21-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing medium-term uptrend. Momentum remains favourable, indicating that buyers continue to dominate on market pullbacks. Immediate support is positioned around 8,860.90. As long as the index holds above this key support level, the broader bullish structure is expected to remain intact, increasing the likelihood of a retest of recent highs and an extension of the ongoing upward momentum. Conversely, a decisive break below 8,860.90 could weaken the near-term technical outlook, potentially triggering renewed selling pressure and raising the risk of a deeper corrective pullback.