The S&P/ASX200 had gained 12 points, or 0.14 per cent, to 8856.8 at lunchtime on Tuesday, as the broader All Ordinaries posted an increase of 8.9 points, or 0.14 per cent, to 9126.5.
United States equities and yields were little changed overnight, with investors in a holding pattern ahead of an inflation readout expected to offer an early glimpse into the pass through of tariffs to consumer prices.
Economists and financial markets were all but certain of a 25 basis point interest rate reduction ahead of the Reserve Bank of Australia's board decision on Tuesday afternoon, reflecting subdued inflation numbers.
Investors will also have fresh economic forecasts and analysis from the central bank, insights that could shape views on how many more cuts to expect.
The nine-member board shocked financial markets and economists in July when they kept the cash rate at 3.85 per cent, defying expectations of a reduction.
Interest rate-sensitive financial and discretionary stocks were leading the index higher at midday, with the latter up 0.8 per cent.
The Star Entertainment Group was a discretionary standout, up 29.1 per cent mid-session after securing a deal to sell its stake in the Queen's Wharf Casino in Brisbane.
JB Hi-Fi shares were also up a firm 6.4 per cent at lunchtime.
All big for banks were in the green, led by ANZ, with a 2.1 per cent lift.
Commonwealth Bank was up 0.4 per cent, while NAB and Westpac were both sitting on modest 0.1 per cent gains.
7°C