Australian shares push higher after dovish rate cut

"US shares snapped their six-day winning streak, with major indices closing in the red, as investors await clarification on where tariff negotiations are at," Moomoo market strategist Jessica Amir said.

"The rally to this point has been fast, so profit-taking ahead of other major economic releases (that could upset sentiment) is only natural."

The S&P500 slipped 0.39 per cent, as the tech-heavy Nasdaq fell 0.38 per cent and the Dow Jones Industrial Average lost 0.27 per cent.

Local shares were playing catch-up after the RBA cut the cash interest rate to 3.85 per cent on Monday, and after governor Michele Bullock admitted global economic uncertainty had the central bank board considering a double-sized 50 basis point cut.

The S&P/ASX200 is up 14.5 per cent from April's lows sparked by the Liberation Day tariff announcement, while Wall Street's tech-heavy Nasdaq has rebounded 27 per cent, the S&P500 20 per cent, while Hong Kong's Hang Seng index has recovered 21.5 per cent.

Ten of 11 local sectors were trading higher by noon, led by more than one per cent gains in energy stocks, financials, health care and utilities stocks, while industrials slipped 0.2 per cent.

Woodside and Santos each ticked up more than 1.1 per cent, tracking with a lift in oil prices amid report Israel is preparing an air strike against Iranian nuclear facilities.

Brent crude futures are trading at $US66.63 a barrel while its West Texas equivalent rose to $US63.36.

The Commonwealth Bank has hit a new intraday high of $176.40, helping lift the financial sector 1.5 per cent, with all four big banks and Macquarie pushing higher.

Westpac share rose 1.2 per cent to $31.89 after in announced it would axe 1500 jobs, the Australian Financial Review reported.

The materials sector is up 0.9 per cent, with BHP up 0.7 per cent and Rio Tinto up 0.8 per cent to $119.79 after winning government approval for its $US2.5 billion ($A3.9 billion) Rincon lithium mine in Argentina.

Gold miners and explorers were among the best performers of the top-200 as the safe haven rallied three per cent overnight to above $US3,300 ($A5,130) an ounce as risk-off sentiment returned to US markets overnight.

James Hardie was at the other end of the scale, down almost eight per cent to $35.42 after its full-year after-tax profit fell 17 per cent to $US424 million ($A659 million), with no dividend to soften the blow for shareholders.

The building materials producer will push ahead with its controversial takeover of exterior building product company Azek, which has been contentious for its $14 billion price tag.

The Australian dollar has gained ground against the greenback to buy 64.38 US cents, up from 64.10 at Tuesday's ASX close.

The US dollar has been retreating as the focus narrows on US President Donald Trump's tax cut bill, which would require the America to raise its debt ceiling by $US4 trillion ($A6.2 trillion) to above $US35 trillion.