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 0.04 per cent, to 8,917.7, as the broader All Ordinaries rose 3.3 points, or 0.04 per cent, to 9,131.3.
While equities improved as RBA governor Michele Bullock gave her port-meeting address, the decision to hold did not constitute a dovish pivot, eToro analyst Josh Gilbert warned.
"The RBA has kept its tightening bias alive, making clear it is prepared to lift rates again if needed and saying it will do what is necessary to bring inflation back to target," Mr Gilbert said.
"Markets are not ruling that out either, with futures still pricing around a 55 per cent chance of another move later this year, a scenario that comes back into play if inflation proves stubborn and price pressures stay sticky."
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.
Crude prices continued to hover at 14-week lows, on par with the early days of the US-Iran conflict, but local oil and gas giants Woodside and Santos managed to rebound from Monday's sell-off, while refinery operators Ampol and Viva also advanced.
Three of the big four banks ended the session clearly higher after a wobbly start to the session, while CommBank shares eked a modest gain as concerns around flagged tax reforms and their impact on an already cooling housing market weighed on Australia's biggest mortgage lender.
Mining stocks were broadly lower, as BHP pipped Monday's record close by less than 0.1 per cent, while Rio and Fortescue fell behind, counterbalancing a second-day rebound for gold stocks.
Battery minerals producers were also heavy, with PLS down 4.5 per cent and Liontown tumbling 8.5 per cent to the session's worst performance of the top-200.
Gold hovered near $US4,317 ($A6,123) an ounce, still significantly lower than where it has spent most of 2026.
In company news, logistics group Qube edged 0.2 per cent higher after its shareholders signed off on a $11.7 billion takeover bid by a consortium led by Macquarie Asset Management.
Karoon Energy shares slumped 12.5 per cent, compounding Monday's oil-led loss after its Gulf of Mexico Who Dat Joint Venture sharply downgraded its 2026 production guidance.
The Australian dollar is buying 70.55 US cents, down from 70.75 US cents on Monday at 5pm.
ON THE ASX:
* The S&P/ASX200 gained 3.7 points, or 0.04 per cent, to 8,917.7
* The broader All Ordinaries rose by 3.3 points, or 0.04 per cent, to 9,131.3
One Australian dollar trades for:
* 70.55 US cents, from 70.75 US cents at 5pm AEST on Monday
* 113.03 Japanese yen, from 113.30 Japanese yen
* 60.89 euro cents, from 60.96 euro cents
* 52.63 British pence, from 52.63 British pence
* 121.38 NZ cents, from 120.96 NZ cents