Australian Share Market Pares Gains Ahead of Rate Hike Decision

The Australian share market pared its gains on Friday, heading for a soft week. The benchmark S&P/ASX200 index rose 10.3 points by midday to be up 0.12% to 8,742.7, while the broader All Ordinaries gained 16.1 points, or 0.18%, to 8,927.

The market's early lead was lost as investors shrugged off easing oil prices and a strong lead from Wall Street. Mining stocks rebounded along with copper and gold prices, but the energy sector was weighed down by dips in Woodside, Santos, Ampol, and Viva.

Gold stocks surged 3.5% higher as the precious metal rose to $US4,346 ($A6,109) an ounce. Financials, consumer stocks, and real estate trusts were in the red ahead of the Reserve Bank's next monetary policy meeting, with markets pricing in a four-in-five chance of a rate hike to 4.6%.

RBA Governor Michele Bullock appeared before a federal parliamentary economic committee on Friday, saying that reducing inflation was essential despite higher interest rates being tough for people with mortgages.