The Australian sharemarket has pushed higher, with broad gains across sectors, including the major miners and banks, despite another slump in the price of iron ore.
The benchmark S&P/ASX200 added 61.4 points, or 1.2 per cent, to close at the day's high of 5396.2. The broader All Ordinaries rose 59.4 points, or 1.1 per cent to 5324.1.
The Australian dollar plunged to a four-year low overnight on Tuesday, falling more than 1 per cent. It recovered marginally in the local session to US85.35¢.
The fall was sparked by comments from Reserve Bank of Australia deputy governor Philip Lowe suggesting the currency was still too high and that the RBA still had the option of cutting interest rates to help stimulate growth.
JBWere executive director Mike Kendall said the fall in the Australian dollar, Dr Lowe's comments and a view that shares had been a bit oversold helped shares lift on Wednesday.
"I think it's those factors that are leading investors to dip their toes into the water today but it's still a very choppy market," Mr Kendall said.
"We tend to run up a bit then roll over, then run up a bit again and roll over again. I think that pattern is going to be the case in markets, probably for some time yet."
The market was likely to wait until half-year reporting season and the dividends associated with many companies before adding any long-standing gains, Mr Kendall said.
The price of iron ore fell under $US70 per tonne for the first time in more than five years, with concerns about the Chinese property market and oversupply continuing to weigh on the steel-making ingredient.
Former Rio Tinto chief executive Tom Albanese said he expected lower for longer iron ore prices and volatility within the market to continue. Iron ore has slumped more than 49 per cent this calendar year.
Despite this, Rio Tinto shares finished Wednesday 1.7 per cent higher at $58.39, while rival BHP Billiton gained 1.3 per cent to $32.53.
Iron ore pure-play Fortescue Metals slipped 0.7 per cent to $2.79, BC Iron rose 2.6 per cent to 48.5¢ and Atlas Iron sunk 4.9 per cent to 19.5¢.
Energy shares were mixed, after the price of Brent crude oil slipped 1.7 per cent overnight on Tuesday, to $US78.51 per barrel, and stayed around the same level during the local session.
Santos shares lifted 1.3 per cent to $11.98, Origin Energy shares shed 0.4 per cent to $13.61 and Oil Search shares added 1.2 per cent to $8.20.
Among financials, Westpac lifted 1.4 per cent to $33.07 and Commonwealth Bank rose 1.1 per cent to $81.01. National Australia Bank finished 1 per cent higher at $32.46 and ANZ gained 0.9 per cent to $32.38.
Medibank Private, on its second day of trading, fell 1.9 per cent to $2.10. Retail investors bought shares for $2 as part of the health insurer's IPO, while institutional investors paid $2.15.
Webjet shares slipped 1.3 per cent to $3.10 after the travel company warned that the domestic travel market is likely to remain flat for the rest of the current financial year. However, Webjet is forecasting a modest improvement in pre-tax earnings to $27 million, up from $23 million in the previous corresponding period.
Cabcharge shares lifted 2.3 per cent to $4.86, after director Rodney Gilmour resigned on Wednesday morning. Mr Gilmour was almost certain to be voted out by investors at the company's annual general meeting and moved to avoid the shareholder revolt.
James Packer's investment vehicle Ellerston Capital sold down part of its stake in Tabcorp, selling off 7.7 million shares. Tabcorp shares finished Wednesday 0.2 per cent lower at $4.16.
Ausdrill shares plunged 10.9 per cent to 45¢ after the drilling companies announced it would lose $28 million in revenue after one of its clients, Resolute Mining said it plans to defer expansion work at one of its miners. Resolute Mining shares posted the biggest gains among the top 200, rising 19.6 per cent to 28¢.
