Local shares are poised to open higher, extending Monday's advance, as both iron ore and oil rally. The $A has extended its own rally, touching an overnight high of US74.85¢.

The value of iron ore rallied the most on record Monday night after steel prices in China jumped on the belief Beijing's pro-growth policies would boost sluggish demand. The benchmark price rose $US9.99 or 18.5 per cent to $US63.74 a tonne, according to Metal Bulletin, the largest gain since daily pricing began in mid-2008.