The Australian sharemarket climbed higher during Tuesday's shortened session, following a positive finish on Wall Street overnight.
The S&P/ASX 200 gained 19.3 points or 0.2% to close at 8,220.9.
Despite the equity market's rise, the Australian dollar declined 0.3% to trade near two-year lows of US$0.6231.
Among data releases, minutes from the Reserve Bank of Australia's (RBA) recent meeting indicated growing confidence among policymakers in their approach to curbing inflation.
Earlier this month, the central bank held interest rates steady at a 13-year high of 4.35%, noting elevated underlying inflation at around 3.5%.
Meanwhile. the International Monetary Fund (IMF) cautioned that the RBA might need to tighten monetary policy further if inflation progress falters amid increased government spending and a tighter-than-anticipated labour market.
On the bond markets, yields remained steady, with 10-year rates at 4.449% and 2-year rates at 3.92%.