Index Update: Australian shares finished largely unchanged on Tuesday as investors assessed the monetary policy outlook following the Reserve Bank of Australia's decision to leave the cash rate unchanged at 4.35%. The S&P/ASX 200 edged higher by 3.70 points to close at 8,917.70. Despite the subdued session, the benchmark index has advanced 3.64% over the past five trading days and remains just 3.10% below its 52-week high.

Market performance was mixed across sectors, mirroring the broader index. Of the 11 major sectors, five closed higher while six finished in negative territory.

Energy led the gains, rising 1.10% as the sector bounced back from recent weakness. However, despite Tuesday’s recovery, energy remains down 4.43% over the past week, making it one of the market's weaker performers over that period. Other notable gainers included utilities (+0.68%) and financials (+0.60%), while consumer discretionary (-1.15%), information technology (-0.91%), and industrials (-0.69%) weighed on the market.

Macro Update: The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35% following its June meeting, citing persistent inflationary pressures despite tighter financial conditions. Inflation remains above target, supported by higher energy and commodity costs, while some businesses continue to pass rising expenses onto consumers. The Board noted slower consumer spending and softer housing market conditions, although business investment remains strong. Ongoing uncertainty surrounding Middle East tensions and global oil supply disruptions continues to pose risks to both inflation and economic growth.

Top Market Movers: Predictive Discovery Limited (ASX:PDI) gained 8.09% to AUD0.935, making it the session’s best performer, followed by Catalyst Metals Limited (ASX:CYL), which rose 7.10% to AUD6.03, and Life360 Inc. (ASX:360), up 4.39% to AUD23.05. Among the decliners, IperionX Limited (ASX:IPX) fell 13.79% to AUD4.69, Karoon Energy Ltd (ASX:KAR) dropped 11.56% to AUD1.645, and Liontown Limited (ASX:LTR) retreated 8.48% to AUD2.05, recording the largest losses of the trading session.

Commodity Update: The U.S. dollar remained close to its 10-day low on Tuesday as improving risk sentiment followed a preliminary agreement to end the conflict between the United States and Iran. Market participants are also monitoring upcoming central bank meetings in Japan and Australia for inflation and policy cues. Gold declined 0.28% to USD 4,338.70 per ounce, silver fell 0.87% to USD 69.57, and copper eased 0.26% to USD 13,728.00. Brent crude oil rose by USD 0.30 to USD 83.42 per barrel amid continued supply concerns surrounding the Strait of Hormuz.

Our Stance: Australian equities ended Tuesday on a muted note as investors evaluated the monetary policy outlook after the Reserve Bank of Australia (RBA) maintained the cash rate at 4.35%. The S&P/ASX 200 gained 3.70 points to close at 8,917.70, extending its five-day advance to 3.64% and remaining 3.10% below its 52-week high. Sector performance was mixed, with energy, utilities and financials leading gains, while consumer discretionary, information technology and industrials lagged. The RBA highlighted persistent inflation risks despite moderating consumer demand and softer housing conditions. Market attention remains focused on inflation trends, central bank policy signals, and geopolitical developments affecting global energy markets. Commodity prices were mixed, with gold, silver, and copper easing, while Brent crude advanced on ongoing supply concerns linked to the Strait of Hormuz.

The S&P/ASX 200 gained 3.70 points in the latest trading session, forming a bullish candlestick pattern that reflects improving market sentiment and renewed buying interest. From a technical perspective, the index remains comfortably above its 21-day Simple Moving Average (SMA), which continues to act as a key dynamic support level and reinforces the prevailing upward trend. Immediate support is located near 8,840.70. As long as the index holds above this level, the broader bullish structure is likely to remain intact, providing a platform for additional upside. The constructive technical setup suggests that buyers continue to maintain control of the trend, while favourable economic developments and sustained investor risk appetite could further support market strength in the sessions ahead.