Shares rebounded on Tuesday, buoyed by gains in real estate and gold miners, while the Australian dollar climbed to a four-month high on expectations that interest rates will stay higher than in other countries.

Economic data on Tuesday showed a surprise 0.2 per cent fall in retail sales in October, an outcome that will please the Reserve Bank, which is keen on a cooling in consumer demand to bring inflation down. Although the RBA is expected to leave the 4.35 per cent cash rate on hold on December 5, markets imply a 68 per cent chance of a rate increase by June.

At a central banking conference in Hong Kong, Reserve Bank governor Michele Bullock said household finances were holding up despite the central bank’s 13 interest rate rises, but warned it was “very uncertain” whether inflation would return to target by the end of 2025.

In stock news, the benchmark S&P/ASX 200 gained 0.4 per cent, or 27.6 points, to 7015.2 and the All Ordinaries also advanced 0.4 per cent. The main benchmark is on track to post a 3.5 per cent gain in November, the second-largest monthly rise this year.

Energy stocks were the biggest laggard, despite oil prices regaining a little ground after three sessions of decline. Brent crude bounced 0.1 per cent ahead of an OPEC+ meeting this week that may result in production cuts.

Among the gold producers, St Barbara leapt 8 per cent to 20¢ and Regis Resources and Northern Star Resources jumped more than 3.5 per cent as the precious metal climbed above $US2000 on expectations that the US Federal Reserve was done raising interest rates.

Stocks on the move

In company news, Origin dropped 0.7 per cent to $8.47 after flagging LNG delivery delays due to a power outage on a loaded ship in Queensland. At the Australian Financial Review CFO Live Summit, AustralianSuper reiterated its opposition to Brookfield and EIG Partners’ proposed $18 billion-plus acquisition of Origin, saying the latest offer left value on the cutting room floor.

Collins Foods soared 9 per cent to $11.01 following strong results and a higher interim dividend, while PointsBet rallied 5.5 per cent to 77¢ after confirming it was on track to deliver revenue growth in 2024.

The major banks climbed, while a 2 per cent retreat in iron ore prices weighed on Rio Tinto and BHP Group, and both finished in the red.

Elsewhere, the Australian dollar extended gains, reaching US66.31¢ – a level last seen on August 1 – buoyed by a weaker greenback on expectations the Fed could start cutting interest rates by the first half of next year.

Ray Attrill, head of FX strategy at National Australia Bank, said the currency had also “been benefiting from the strengthening in the Chinese yuan and to the resilience in the iron ore price above $US130 a tonne”.

The local currency is often used as a liquid proxy for the yuan given China is the single biggest importer of Australian commodities.