Australian Shares Bounce as Rate Hike Expectations Shift

Australian shares bounced back from early losses to close higher on Tuesday, driven by a dovish repricing of interest rate expectations after Reserve Bank governor Michele Bullock's speech.

The S&P/ASX200 rose 53.8 points, up 0.6 per cent to 8,947.8, while the All Ordinaries gained 48.2 points or 0.53 per cent to 9,112.

Bullock noted that demand growth was moderating as expected after three cash rate increases in 2026, but housing and jobs market conditions had eased more steeply than predicted.