The materials, energy and finance sectors provided much of the power behind the local market's strong move this morning.

Investors seem to be more confident with the market's continuing rally in the equities and commodity markets.

Macquarie Group is the best performer among the financial stocks as it erased its losses from last Friday's fall.

Heavy index weighted stocks, BHP and RIO led the gain in the basic material sectors as commodity prices, especially copper, traded at its three month high. Energy related stocks Roc Oil and Caltex surged more than 3% as Crude oil prices traded close to its three month high on expectation that economic recovery in the US may spur demand for oil.

The Australian dollar continued to surge higher overnight against the US dollar. The Aussie is definitely gaining strength from investors' increasing risk appetite, rising commodity prices and strong equity market performance across the globe.

The market has priced in that the Reserve Bank of Australia (RBA) will keep cash rate on hold today. The market is now focusing on the content of the RBA minutes to be released with the cash rate decision, which shall provide indication on the next rate movements.