Banks and miners helped Australian shares higher on Wednesday, while investors awaited the local employment data due a day later for cues on the domestic central bank’s rate cut path.

The S&P/ASX 200 index rose 0.2% to 8,249.4 points by 2346 GMT.

The benchmark rose 0.5% on Tuesday.

The domestic employment data, due on Thursday, is one of the Reserve Bank of Australia’s (RBA) favoured measures to decide on interest rates.

Australia’s jobless rate had posted a shock decline in November 2024 to an eight-month low, suggesting an evidently more resilient labour market.

A more-than-expected decline in the unemployment rate again for December could further pare back bets of an RBA rate cut in February.

Investors are currently pricing in a 73% chance of a rate cut at the RBA’s Feb. 18 meeting, the RBA watch tool showed.

Local banks, which benefit from higher-for-longer rates, led the blue-chip index higher, rising 0.5%.

The “Big Four” banks advanced between 0.3% and 0.7%.

Heavyweight miners rose 0.5% on stronger iron ore prices due to lower shipments by key producers and top consumer China’s robust steel exports.

Mining majors Rio Tinto and Fortescue moved 0.3% and 1.3% higher respectively, while BHP posted a 0.3% decline.

Banks, pharmaceuticals drag Australian shares lower

Real estate stocks also added to the gains on the ASX 200 benchmark, posting a 0.9% rise.

LendLease and Mirvac rose 1.5% and 0.5%, respectively.

Gold stocks were the biggest percentage gainers on the benchmark, rising 1.3% on the back of higher bullion prices post a weaker US inflation print.

Gold miners Evolution Mining and Northern Star Resources gained 2.9% and 0.7%, respectively.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index edged 0.2% higher to 12,904.49 points.