Australian stocks flirted with an all-time high on Tuesday, a day ahead of the U.S. Federal Reserve’s policy decision and as investors waited for local jobs data due later in the week.

The S&P/ASX 200 ended 0.2% higher at 8140.9 points, marking its fourth straight session of gains. The benchmark touched a record 8150.5 points during the session.

The U.S. Federal Reserve is widely expected to cut rates for the first time since 2020 at the close of its two-day meeting on Wednesday.

Markets are pricing in a 67% likelihood of a 50 basis points (bps) cut, with a 33% chance of a 25 bps reduction, the CME FedWatch Tool showed.

The Reserve Bank of Australia, on the other hand, has stuck to a hawkish stance by ruling out the possibility of a rate cut this year as inflation remains too high, even though the economy struggles to motor on.

That might change after local jobs data is out on Thursday, throwing light on how well the labour market is handling the extended period of high interest rates.

Australian shares rise towards fresh high as gold stocks shine; Fed in focus

“The market is holding on to the risk that the domestic labour market weakens quickly, as it has in other countries,” Westpac said in a note, adding “price action will be skewed to more bullish moves on weaker-than-expected outcomes than the opposite.”

Rate-sensitive financials rose 0.2% in their second consecutive session of gains. Shares of National Australia Bank and Westpac added 0.2% and 0.7% respectively.

Energy stocks rose by 0.2%, driven by rising oil prices as the market focused on U.S. output disruptions from Hurricane Francine and anticipated lower U.S. crude stockpiles.

Sector heavyweights Woodside and Santos were up 0.1% and 0.3%, respectively.

The New Zealand benchmark S&P/NZX 50 index lost 0.3% to 12,671.95 points.