At lunchtime AEST on Wednesday, the benchmark S&P/ASX200 index was up 30.2 points, or 0.42 per cent, to 7,139.1, while the broader All Ordinaries rose 28.8 points, or 0.39 per cent, to 7,344.6.
The local bourse followed a positive lead from Wall Street overnight, with the Dow Jones Industrial Average up 0.9 per cent - its biggest gain in almost a month.
US investors are feeling bullish about the release of key inflation data, with analysts expecting it will show CPI fell in June from the 4 per cent recorded in May.
Energy stocks were the biggest movers in morning trading, firming 1.9 per cent as commodities climbed.
The price of West Texas Intermediate climbed to over $75US a barrel - the highest level in over two months - as major crude exporters Saudi Arabia and Russia clamp down on supplies.
Oil and gas giant Woodside rose 2.5 per cent while exploration company Melbana Energy surged 15 per cent higher.
Materials stocks lifted one per cent and the remaining nine industrial sectors were mixed.
The big miners were boosted by a rising iron ore price, as promised Chinese stimulus signals construction may be back on the rise for Australia's largest trading partner.
BHP gained 1.4 per cent, Rio Tinto firmed 1.5 per cent and Fortescue Metals was 1.9 per cent higher.
Battery minerals producer Neometals jumped 8.5 per cent after announcing an agreement to sell recovered vanadium products to commodities multinational Glencore.
Diversified mining and manufacturing company Incitec Pivot confirmed it is considering selling off its fertiliser business, sending shares up 4.9 per cent.
Missing out on the fun were Bellevue Gold, which dropped 5.1 per cent as investors banked earlier profits, and rare earths miner Lindian, which fell 14.5 per cent after securing a $35 million capital raising.
The banks were mixed, with CBA down 0.1 per cent, ANZ and NAB up 0.3 and 0.6 per cent respectively, and Westpac moving sideways.
Pepper Money plunged 7.3 per cent, as the non-bank home lender continues to search for a buyer.
Legal weed producer Little Green Pharma hit a three-month high, up 5.3 per cent after it was awarded a commercial tender to supply up to $1.6 million of its CBD50 product to a French medicinal cannabis trial.
KMD Brands slipped 9.8 per cent after the Kathmandu owner blamed softening consumer sentiment on a slower start to winter trading.
In company news, Australia's biggest fruit and vegetable producer Costa Group announced interim chief executive Harry Debney will step down at the end of the year, as the company negotiates a takeover from US private equity firm Paine Schwartz Partners.
Reserve Bank governor Philip Lowe's speech shortly after 1pm AEST will capture the attention of local traders who will be keeping an eye out for any deviation from the hawkish tone he has set in recent weeks.
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