AU Evening Wrap: Australia Shares Rise 1.4%; AGL Gains on Upgraded Profit View

Australia's $S&P/ASX 200 (.XJO.AU)$ index closed up 1.4% at 7793.3, lifted by the central bank's messaging on interest rates and a brighter outlook from the country's biggest power generator. The RBA, which kept rates unchanged, again said it's not ruling anything in or out as it vies to tame inflation.

$AGL Energy Ltd (AGL.AU)$ rose 7.4% to A$10.01 after upgrading its annual profit view, partly due to strong power demand over summer in eastern states. $ANZ Group Holdings Ltd (ANZ.AU)$ rose 0.1% to A$28.79, even as some analysts predicted consensus profit downgrades following its 1H result. Banking peer $National Australia Bank Ltd (NAB.AU)$ declined 1.5% to A$34.14 after trading ex-dividend. $Sims Ltd (SGM.AU)$ fell 6.4% to A$11.06 on a weak trading update that RBC said could lead to the scrap-metal company reporting an annual loss.

Following the Reserve Bank of Australia's decision to keep the cash rate at 4.35%, the $AUD/USD (AUDUSD.FX)$ slipped to US66.10¢ from US66.25¢. The central bank appeared less hawkish than expected, causing bond yields to fall. The three-year return, which is sensitive to policy changes, retreated 6 basis points to 3.97%, well below the 4.17% level reached last month. Similarly, the 10-year yield shed 3 basis points to 4.34%. Money market futures also slightly reduced their bets on a cash rate hike, with a 43% chance of a move this year compared to 44% prior to the decision.