The Australian stock market has closed higher after the Reserve Bank of Australia lifted its forecasts for both growth and inflation, but global investors are keenly awaiting jobs data from the United States due out tonight.
At the 1615 AEDT official market close, the benchmark S&P/ASX200 index rose 0.68 per cent to 5,166.5 points, while the broader All Ordinaries index increased 0.72 per cent to 5,184.5 points.
Over the week, the market closed 0.44 per cent lower.
IG market strategist Stan Shamu said if the market had found this morning's RBA monetary policy statement hawkish, it would have been sold off.
"The RBA is cautious on jobs and that keeps the market happy," Mr Shamu said, adding there was still a chance of a rate cut later this year.
"The upgrades to growth and inflation are also positive."
Emerging markets also continued to improve, with Turkey posted a gain of around three per cent, indicating some signs of stability, he said.
He also noted the non-farm payrolls reading expected from the US tonight will help shape sentiment for risk, with investors expecting a bounce.
"Eight out of the last nine payrolls releases have seen US equities gain ground and if that counts for anything we could be in for an extension of gains," Mr Shamu said.
"Given tapering now seems to be on a set course, it is important to see US jobs stabilising to help underpin confidence."