Aussie shares hit three-month high, CBA at new peak

ASX indicator boards in Sydney
The ASX has closed at a three-month high, rising 0.54 per cent to finish at to 8,388.7. -AAP Image

Australian shares have closed at a three-month high following the Reserve Bank's interest rate cut.

The S&P/ASX200 rose 45.4 points, or 0.54 per cent, to 8,388.7, as the broader All Ordinaries gained 39.5 points, or 0.46 per cent, to 8,612.9.

The Commonwealth Bank has notched a new all-time high of $176.46.

The world's most expensive bank stock has surged more than 24 per cent from early April's lows, outperforming the top-200 index, which is up 14.5 per cent from its April 7 close.

The Australian dollar is buying 64.52 US cents, up from 64.10 at Tuesday's ASX close, with the greenback lower against most major currencies.