AAP

Wall Street's overnight tumble has taken the edge off Australian shares at the open, while the Aussie dollar continues to loiter at near two-and-a-half year lows in the face of a strong greenback.

US stocks fell broadly on Thursday, mirroring weakness in the global markets, as government bond yields surged to multi-year highs on robust economic data and optimistic views from the Federal Reserve.

Oil prices fell overnight as the prospect of increased crude production from Saudi Arabia and Russia prompted profit-taking the day after futures hit four-year highs on a boost from imminent US sanctions on OPEC's number three producer, Iran.

Gold steadied as positive US economic data and prospects of tighter monetary policy offset limited gains from safe haven buying.

The Australian share market has closed higher, buoyed by the banks and commodity-related stocks, but the Aussie dollar has fallen below 71 US cents for the first time since February 2016.

Federal Labor is hoping influential Senate crossbenchers deliver crucial support for a push to guarantee no state or territory will be worse off under new GST revenue carve-up arrangements.

Gains for materials, banking sector, and energy stocks have lifted the ASX at Thursday's open, following a strong overnight performance by Wall Street on the back of rising US Treasury yields.

US shares have advanced and the Dow Jones Industrial Average closed at a record for a second day, after American economic data fuelled a rise in Treasury yields, lifting financial stocks.

Brent crude rose nearly two per cent after hitting a four-year high on overnight as the market focused on upcoming US sanctions on Iran, while shrugging off the year's largest weekly build in US crude stockpiles and reports of higher Saudi Arabian and Russian production.

Gold eased overnight after the Italian government indicated it was open to trimming its budget deficit and debt, soothing investors' nerves and prompting a wider move back into stocks and other higher-risk assets.

Higher commodity prices have boosted local material and energy stocks, and pushed the Australian share market to close higher.

The Australian share market has edged higher at the open, boosted by the heavyweight materials sector, which lifted on improved copper and gold prices.

US stocks treaded water pressured by worries of a eurozone breakup after anti-euro comments from an Italian lawmaker.

Oil prices eased slightly after rallying for three straight sessions, but remained close to four-year highs on worries that global supplies will drop due to Washington's sanctions on Iran.

Gold hit its highest in more than a week overnight, vaulting the $US1,200 per ounce mark, as investors sought refuge in the metal after stock markets sold off due to anti-euro comments by an Italian lawmaker.

The Australian share market has closed lower, dragged down by banking and health care stocks while the Australian dollar has fallen after the Reserve Bank held the cash rate at 1.5 per cent for the 26th straight month.

The federal government expects the nation's resource and energy exports to hit a record of $252 billion in 2018-2019, buoyed by climbing prices for commodities such as natural gas and by a weaker Australian dollar.

Reserve Bank Governor Philip Lowe says Australia can expect inflation to rise, but unemployment to fall past its current six-year low of 5.3 per cent, as the central bank left the cash rate unchanged at 1.5 per cent for the 26th month in a row.

Every state and territory will be better off under a new deal on the GST, Treasurer Josh Frydenberg promises.

The Australian share market has opened flat, but rising oil and iron ore prices have lifted the energy and mining sectors, offsetting continued losses for the under-fire financials.

US stocks have advanced, led by gains in shares of technology and industrial companies, as a last-minute deal to save NAFTA as a trilateral pact raised hopes for progress in talks with other countries at the start of the fourth quarter.

Gold fell as investors favoured riskier assets after the United States and Canada salvaged NAFTA as a trilateral trade pact with Mexico, while expectations that a strong US economy would lead to higher borrowing costs also influenced sentiment.

Oil futures jumped more than $US2 a barrel, rising to levels not seen since November 2014, as US sanctions on Iran loom and a North American trade deal fosters growth.

The Australian share market has closed lower, dragged down by the financial sector after a correction to banking stocks following the release of the royal commission's interim report on Friday afternoon.

New laws guaranteeing Western Australia's GST share stays above 75 cents in the dollar will go through parliament within weeks.

The downward trend in Perth’s housing market has continued in September, with the latest CoreLogic data showing a 0.6 per cent decline in house prices for the month.

Health care is the only major sector in the green as the Australian share market opened the public holiday lower, with the big banks weighing heavily after calls to extend the banking royal commission.

Wall Street ended flat on Friday as gains by Intel, real estate companies and utilities offset a drop in Facebook after the social media network disclosed a fresh security breach.

Gold inched higher but was on track for its longest monthly losing streak since January 1997 as the US dollar firmed against the euro after Italy's budget jitters threatened the European currency.

Oil prices rose more than a percent, with Brent climbing to a four-year high, as US sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.

Treasurer Josh Frydenberg has demanded the banks and regulators fix an insidious culture of greed over honesty outlined in a scathing interim report of the Financial Services Royal Commission.

The Australian share market has closed higher after investors' worst fears over the banking royal commission's interim report were unfounded.