AAP

Australian shares closed stronger, buoyed by record highs on Wall Street and investor hopes the local earnings season won't be as bad as initially feared.

The Reserve Bank is forecasting a slow but orderly return to above-trend growth and for inflation to return to target within three years, but economists and the International Monetary Fund warn that risks remain.

The share market has gained ground thanks to strength among the big four banks, following Wall Street's rise to record levels.

The Australian dollar is only fractionally higher against its US counterpart following a basically upbeat message from the local reserve bank chief.

Oil prices have held onto gains after an unexpected draw in US petrol inventories pointed to higher demand in the world's biggest oil market, although bloated crude supplies meant that fuel markets remain under pressure.

Gold has slipped from a three-month high in the previous session after robust US economic data pointed to a stronger economy, increasing the likelihood that the Federal Reserve will raise US interest rates.

Wall Street stocks surged to record highs on Thursday and the US dollar and bond yields rose after US President Donald Trump said he would release a "phenomenal" tax plan in the next few weeks.

The share market has edged higher as investors digested mixed earnings reports from the likes of miner Rio Tinto, investment manager AMP and AGL Energy.

Sydney-based AGL Energy has said it would lose around $15 million in a bid to enter the Western Australian domestic gas market in the 2018 financial year, after it lodged a retailing application with the state's Economic Regulatory Authority.

Western Australia's financial outlook has worsened considerably in less than two months, with no return to surplus in sight and ballooning debt, pre-election projections show.

Profit continues to fall for Optus despite the telco attracting many new customers, largely due to its exclusive coverage of English Premier League matches.

The company building the national broadband network, NBN Co, says the number of homes and businesses connected to the network is now 1.6 million - double the same time a year ago.

A slip in the major miners is weighing on the Australian stock market as investors digest Rio Tinto's overnight profit result and investors bid up energy and industrial stocks.

The Australian dollar is little changed against the US dollar which has been pressured by the decline in US bond yields as investors price out a March rate rise by the Federal Reserve.

Oil prices have gained slightly as investors covered short positions after a rise in US crude inventories was not as massive as many had feared, while petrol futures jumped nearly 4 per cent after a surprise decline in inventories of the fuel.

Gold has risen to a three-month peak, as political risks posed by elections in Europe and worries over US President Donald Trump's policies stoked safe haven demand.

The share market has gained ground due to strength among the big four banks, well-received earnings reports from Carsales.com and construction firm CIMIC, and a higher price for iron ore.

Rio Tinto has bounced back to profitability, reporting full-year profit of $US4.6 billion ($A6.1 billion) for 2016 on the back of a jump in iron ore prices.

The state government has urged the WA Football Commission to show common sense after it rejected $100 million in compensation over 10 years to surrender its lease on Subiaco Oval.

WA Labor says it will assess each One Nation candidate before deciding where to put them on how-to-vote cards, suggesting they won't necessarily be ranked last.

State Treasurer Mike Nahan has put his neck on the line to stop the Nationals WA's proposed mining tax, saying he will resign from the portfolio if a post-election Liberal government does a deal to lift royalties.

Construction and contract mining company CIMIC Group has flagged a boost in annual profit of up to 21 per cent in 2017 after delivering a solid rise in profits for the year just ended.

The Australian share markets has opened higher, with banks leading the way and helping to partially offset recent losses .

The Australian dollar is sharply lower against its US counterpart after the US dollar gained for a fifth straight session, rising to a more-than-one-week high.

Oil prices have fallen, pressured by sluggish demand and evidence of a burgeoning revival in US shale production that could complicate efforts by OPEC and other producers to reduce a supply glut.

Gold has slipped from a three-month peak, pressured by earlier strength in the US dollar as the euro fell on weak German industry data and nervousness ahead of the French elections.

The S&P 500 ended barely higher on Tuesday while the Nasdaq managed to scratch out a new record as gains in big tech names countered energy declines.

The share market and Australian dollar got a boost from the Reserve Bank of Australia's decision to hold rates steady, as it pointed to an expected pick-up in mining exports.

Perth Lord Mayor Lisa Scaffidi has admitted she didn't carefully fill in annual returns disclosing gifts and travel contributions, including BHP Billiton paying for her luxury accommodation and business class flights to the 2008 Beijing Olympics.

A marina in Perth's north is a sure thing after the WA Liberals pledged $105 million to its development, weeks after Labor committed $40 million to a similar project.

The Reserve Bank has held its benchmark interest rate at 1.5 per cent, saying increases in mining exports and a pick-up in consumption will support a return to reasonable economic growth after a dip in the September quarter.

Strong sales growth in Australia has lifted outdoor clothing specialist Kathmandu's expectations for its first-half profit result.