A positive lead from Wall Street and a continuation of positive reaction to local earnings reports has helped take the sharemarket to its highest level in nearly six years.
The Australian dollar has fallen against a stronger US dollar following the release of Federal Reserve minutes showing it was determined to wind back its economic stimulus program.
US stocks have finished lower after minutes from the latest US Federal Reserve meeting showed some policymakers sought an early hike in the Fed's benchmark interest rate.
The Australian market closed slightly higher as gains from mining giant BHP Billiton's strong profit results were dragged down by a disappointing result from Coca-Cola Amatil.
The Australian sharemarket has opened stronger due to record Chinese credit growth, a strong lead from Wall Street and better-than-expected domestic earnings season.
US stocks have surged higher this week as investors were reassured by the Federal Reserve, cheered by a congressional move to raise the debt ceiling and undeterred by disappointing economic data.
The Australian dollar has risen after weak US economic figures raised hopes the US Federal Reserve might not increase the tapering of its economic stimulus program any time soon.