Australian shares rebounded on Wednesday helped by miners, although a drop in energy stocks limited gains, while investors awaited a slew of central bank policy decisions including the US Federal Reserve later in the day.

The S&P/ASX 200 index closed up 0.3% at 7,501.7, after hitting its highest since April 22 earlier in the session.

The benchmark, which ended 0.1% lower on Tuesday, recorded its best January performance since the index was launched in April 2000.

Investors are eagerly awaiting the Fed’s decision, where it is expected to deliver a 25 basis point (bp) hike, for hints at an end to the tightening cycle.

This could also set the tone for Reserve Bank of Australia’s (RBA) policy meeting next week. “Inflation has not yet peaked in Australia, and I suspect the RBA will eventually have to hike above 4%…whilst inflation in Australia is comfortably above 7% and trending higher,” City Index senior market analyst Matt Simpson said.

Mining stocks rose 0.7%, after top iron ore consumer China’s data showed factory activity in January contracted at a slower pace. China’s PMI data “is certainly helping miners…showing improvement for new orders in manufacturing, construction and services,” eToro market analyst Josh Gilbert said.

Australian shares dip ahead of rate decisions; log best January on record

Mining gaints BHP Group, Rio Tinto and Fortescue Metals Group rose between 0.3% and 1%.

However, the energy index fell 1.2%, slipping for the fifth session in row, with Santos Ltd and Woodside Petroleum falling 1% and 1.4%, respectively. Financial stocks were flat, with lender ANZ Group up 0.8%.

Westpac Banking Corp dipped 0.5%. Technology stocks ended 0.4% lower, with top loser Megaport Ltd extending losses after missing analyst estimates on Tuesday.

Gold stocks shed 0.4%, with bullion prices trading in a narrow range. Meanwhile, New Zealand’s benchmark S&P/NZX 50 index rose 1% to close at 12,090.93.