Shares trim losses as RBA holds rates, outlook unclear

The ASX board
Stocks ended the day flat after the RBA kept rates on hold and said a recession was unlikely. -AAP Image

Australia's share market has squared an early dip for an almost flat finish, after the Reserve Bank held the cash rate steady and flagged a data-dependent path ahead as it walks the tightrope between sticky inflation and idling economic growth.

The S&P/ASX200 edged 3.7 points higher on Tuesday, up 3.7 per cent, to 8,917.7, as the broader All Ordinaries rose 3.3 points, or 0.04 per cent, to 9,131.3.

Energy stocks outperformed the other sectors as oil prices stabilised as traders mulled the realities of the yet-to-be signed US-Iran peace deal, while the banks also offered support, pivoting into the green after the RBA decision.

The Australian dollar is buying 70.48 US cents, down from 70.75 US cents on Monday at 5pm.