The S&P/ASX200 rose 13.1 points, or 0.17 per cent, to 7761.7, as the broader All Ordinaries gained 10.2 points, or 0.13 per cent, to 7969.9.
The rise followed a positive Wall Street session on Monday, after US trade policy softened with an exclusion for selected electronics imports from China and President Donald Trump flagged a potential carve-out for the auto industry.
"It's a definite lull, the news cycle has slowed down quite a bit," Capital.com senior market analyst Kyle Rodda told AAP.
"On one side of the market, they're talking more concessions and signs of negotiation before pushing higher, and on the flip side, things aren't going to sell off, unless we see tensions ratcheting up again."
Local sectors were mixed, with financial stocks up 0.5 per cent and materials lifting 0.4 per cent, as consumer staples and IT stocks lost about one per cent each.
The big four banks pared early gains but closed the day in front, led by a 0.8 per cent lift in Westpac shares, followed by ANZ and NAB, which gained 0.7 per cent as CBA grinded 0.5 per cent higher.
Iron ore miners posted modest gains after the ore price rose overnight, with BHP up 0.4 per cent, Rio Tinto lifting 0.5 per cent and Fortescue posting a 0.8 per cent gain.
Health care stocks outperformed the broader market, up 1.3 per cent, thanks in part to a 2.6 per cent rally in CSL after Morgan Stanley tipped it to be well-positioned to ride out the rocky seas of shifting US trade policy.
Collins Foods shares took a 7.7 per cent battering after announcing plans to sell its struggling Taco Bell business in favour of a German expansion of its KFC stores and flagging a potential $32.7 million impairment from its Netherlands businesses.
Rare earths miner Iluka Resources and gold play Evolution Mining were the top-200's best performers, up 5.3 per cent and 3.9 per cent respectively, as commodity prices edged higher.
The Reserve Bank's April meeting minutes indicated an openness to cut rates next month, pending the next consumer price index print in two weeks time.
"The May meeting would be an opportune time to revisit the monetary policy setting with the benefit of additional data about inflation, wages, the labour market and trends in economic activity," the board wrote.
"Along with a fresh set of economic forecasts and further information about the likely evolution of global trade policies."
The Australian dollar is buying 63.59 US cents, up from 63.31 US cents to its highest level since April 3.
ON THE ASX:
* The benchmark S&P/ASX200 index rose 13.1 points, or 0.17 per cent, to 7761.7 on Tuesday
* The broader All Ordinaries gained 10.2 points, or 0.13 per cent, to 7969.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.59 US cents, from 63.31 US cents on Friday
* 91.17 Japanese yen, from 90.13 Japanese yen
* 56.13 euro cents, from 55.43 euro cents
* 48.21 British pence, from 48.08 British pence
* 107.60 NZ cents, from 107.53 NZ cents
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