Australia’s sharemarket defied a new interest rate outlook to post a second session of gains, after reports of a record release of crude reserves helped take pressure off oil prices.
Some economists predicted that the Reserve Bank of Australia would change course to raise the official cash rate at its March meeting to head off a spike in inflation fuelled by the conflict in Iran.
IEA flags biggest-ever crude release
Oil prices dipped over the session after the International Energy Agency proposed the largest-ever release of crude reserves.
The IEA’s 32 member nations, which hold at least 1.2 billion barrels in emergency supplies, are expected to decide on the proposal later on Wednesday.
Strait of Hormuz risk still looms
Oil worries remain however, with the Strait of Hormuz route effectively closed as air strikes continue to hit multiple key producer nations.
Aussie dollar near four-year highs
The Australian dollar was trading at nearly four-year highs against the greenback, buying 71.82 US cents, up from 70.77 US cents on Tuesday at 5pm.
