Australian shares post record close as financials surge

Australia's share market has closed at its highest ever level as multiple sectors rallied on hopes of a trade resolution between the United States and China.

The S&P/ASX200 rallied 66 points, or 0.78 per cent, to 8,581.7, as the broader All Ordinaries jumped 65.4 points, or 0.75 per cent, to 8,807.3.

The rally on Tuesday came as the local bourse caught up on two positive Wall Street sessions after the long weekend and amid positive signs from US-China trade talks in London.

The top 200 pipped its previous record close set on February 14, but came up short of that day's intraday peak of 8,615.2.

Commonwealth Bank continued to defy gravity, breaking $182 for the first time as the financial sector also smashed its record to close with a combined market cap of more than $900 billion.

The Australian dollar is buying 65.05 US cents, up from 64.41 US cents on Friday at 5pm, but still seemingly unable to break above 65.40 US cents, after a tepid rebound in consumer sentiment boosted the likelihood of more Reserve Bank interest rate cuts.