Australia Market extends gain as RBA keeps policy steady

The Australian share market finished session higher on Tuesday, 06 October 2020, as investors' appetite for risk assets continued after the Reserve Bank of Australia (RBA) kept its current policy settings on hold.

Meanwhile, easing fears over political uncertainty after US President Donald Trump was discharged from hospital following treatment for Covid-19 and rising optimism that U.S. lawmakers could agree on new stimulus also offered some support as talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued.

At closing bell, the benchmark S&P/ASX200 index inclined 20.49 points, or 0.34%, to 5,962.07. The broader All Ordinaries added 29.10 points, or 0.47%, to 6,164.21.

Energy stocks rallied as oil extended sharp overnight gains. Origin Energy, Woodside Petroleum, Beach Energy, Oil Search and Santos jumped 2-3%

Technology stocks also rose, with Afterpay surging nearly 5% and Wisetech Global adding 2%.

ECONOMIC NEWS: Australia construction sector continued to contract in September, with a seasonally adjusted Performance of Construction Index score of 45.2, the latest survey from the Australian Industry Group showed on Tuesday. That's up from 37.9 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

The country's balance on goods and services declined 43% from July to August on a seasonally adjusted basis, according to trade data released Tuesday by the Australian Bureau of Statistics.

CURRENCY NEWS: The Australian dollar changed hands at $0.7152 following the RBA's monetary policy decision, after seeing an earlier high around $0.72.

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