Australian shares edge higher as Gaza airstrikes resume

An early rally on the back of an overnight Wall Street lift slumped on the futures market as Israel lunched fresh airstrikes in Gaza, shattering a ceasefire in place since mid-January. 

It was the second military escalation in the Middle East in as many days after the US vowed to continue attacking Houthi rebels in Yemen over the group's strikes on commercial ships.

The instability and hopes of fresh stimulus measures in China helped oil futures jump 0.2 per cent since morning trading, with Brent crude futures up 17 US cents to $US71.24 a barrel.

Gold has hit an all-time high, the safe-haven breaching the $US3000 mark for the second time in history.

The Australian dollar has rolled over against the greenback to trade at 63.74 US cents, down from an intraday high of 63.88 US cents but still higher than Monday afternoon's 63.29 US cents.