ASX edges higher, iron ore lifts miners

The news: The Australian sharemarket edged higher on Wednesday to close its fourth straight day of gains, lifted by health care stocks, financials and real estate stocks. The benchmark ASX 200 finished 0.31% higher at 7,257.80, while the broader All Ordinaries lifted 0.34%. Better-than-expected iron ore prices and a bigger tax take have improved the federal government's mid-year mini-budget to within striking distance of a surplus in FY24.

The numbers: The Aussie dollar has rolled over and is trading at 65.6 US cents, with most currencies trading flat against the greenback ahead of the Fed's final 2023 rates decision tonight.

Iron ore hit new highs for 2023 overnight and is trading at around USD134.30, helping lift miners BHP, Fortescue and Rio Tinto to solid gains on Wednesday. Oil held a tight range after slumping under the weight of oversupply and demand concerns last night, with Brent futures in Singapore trading at around USD73.30 a barrel.

The context: The US Federal Reserve will determine the funds rate for the last time in 2023 overnight, with the consensus betting on a hold. But investors are keen to gauge official rhetoric on when the US central bank, a yardstick for global liquidity, might consider easing rates in 2024. Closer to home, the ABS will release key employment data tomorrow morning, RBA financial system assistant governor Brad Jones will address the Australasian Finance and Banking Conference in Sydney, and Westpac and Elders will hold AGMs.