Australian shares ticked higher on Tuesday, as the gains in banking and health stocks slightly overshadowed the losses in commodity stocks, while cautious investors awaited a slew of data slated to release this week.

The S&P/ASX 200 index rose 0.2% higher to 7,210.0 by 2350 GMT, set for its third straight session of gains.

The benchmark rose 0.1% on Monday.

Markets are now focused on Australian employment data and U.S inflation data, both due on Dec. 14, for clearer insight into the course of interest rate hikes by the domestic central bank in the upcoming months.

Additionally, investors expect the Federal Reserve to hold rates in its year-end monetary policy meeting on Dec. 13, while hoping for a rate cut in fiscal 2024, after a strong US jobs report last week.

However, there is still uncertainty regarding when the first rate cut would take place. Banking stocks led gains on the benchmark, rising 0.3%, set for their third straight session of advances, with the ‘Big Four’ lenders rising between 0.1% and 0.4%.

Australia shares climb on rate-cut hopes; employment data in focus

Healthcare stocks were up 0.8%, also on track to rally for a third session, with sector stalwart CSL Ltd rising 0.7%.

Technology stocks rose 0.7%, tracking overnight Wall Street gains for their peers.

Shares of Xero were up 1.25%. Heavyweight miners, on the other hand, fell 0.2%, as iron futures fell on reducing demand in top consumer China.

Sector majors BHP Group and Rio Tinto fell 0.4% and 0.5%, respectively. Gold stocks fell 0.2% on weaker bullion prices, set for their third straight session of losses.

Energy stocks were down 0.5% and were on track for snapping a four-day rally.

The New Zealand benchmark S&P/NZX 50 index fell 0.4% to 11,408.86.

Investors await the country’s third-quarter GDP data due on Dec. 14.