The local share market has climbed for a fifth straight day of gains, finishing just under the crucial 7,000 level ahead of Tuesday's Reserve Bank decision on rate hikes.
The benchmark index on Monday closed 19.2 points higher at 6,997.4, a 0.28 per cent rise, while the broader All Ordinaries gained 17.2 points, or 0.24 per cent, to 7,192.3.
The gains came as the fighting in the Middle East remained relatively contained and an October US jobs report on Friday night came in weaker than expected, adding to sentiment that the Federal Reserve won't hike rates again this cycle.
The US dollar slid on the news, hitting a three-month low against a basket of other currencies.
Meanwhile, markets are pricing in just shy of a 50-50 chance that the Reserve Bank will raise Australian rates on Tuesday, Melbourne Cup Day.
Royal Bank of Canada economists Robert Thompson and Su-Lin Ong said in a note on Sunday that they expect a hike on Tuesday and said there was also a high risk of a follow-up hike in December or February.
"While our base case remains that the RBA stops at a terminal rate of 4.35 per cent, we think the risk of back-to-back hikes is well above 20 per cent," they wrote.
The ASX finished mixed on Monday, with eight sectors higher and three lower.
Health care was the biggest mover, up 1.5 per cent as CSL grew 1.7 per cent to $248.22
Westpac climbed 2.0 per cent to $21.92 as Australia's oldest corporation posted a full-year net profit of $7.2 billion, up 26 per cent from last year, and announced a $1.5 billion share buyback.
"Over the past year we've further strengthened the bank, improved our financial performance and continued to support customers in a rising interest rate environment," chief executive Peter King said in a letter to shareholders.
ANZ added 0.6 per cent to $25.74, CBA gained 0.5 per cent to $100.42 and NAB rose 1.0 per cent to $29.34.
In the heavyweight mining sector, Rio Tinto retreated 0.9 per cent to $121.50, BHP dipped 0.1 per cent to $45.44 and South32 dropped 1.5 per cent to $3.27.
Goldminers were up, however, as the precious metal traded for $US1,984 an ounce.
Newmont finished up 1.0 per cent at $59.50 and Red 5 climbed 8.2 per cent to a year and a half high of 33c after announcing at its annual general meeting that its King of the Hills goldmine in WA was on track to deliver at the top end of production guidance.
In small caps, Whispir 61.7 per cent to 48.5c after Sydney-based Soprano Design Technology announced it was launching a $62.8 million, 48c-per-share off-market takeover bid for the rival communications-as-a-service platform.
Whispir's board said it was evaluating the offer and would respond at a later date.
In currency, the Australian dollar was buying over 65 US cents for the first time since August 11.
The Aussie was trading for 65.15 US cents, from 64.34 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 19.2 points, or 0.28 per cent, at 6,997.4.
* The broader All Ordinaries gained 17.2 points, or 0.24 per cent, at 7,192.3.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.16 US cents, from 64.34 US cents at Friday's ASX close
* 97.43 Japanese yen, from 96.67 Japanese yen
* 60.68 Euro cents, from 60.52 Euro cents
* 52.62 British pence, from 52.71 pence
* 108.67 NZ cents, from 108.99 NZ cents.
