The Reserve Bank’s decision to cut the cash rate to a record low 0.1 per cent and optimism from US investors have contributed to the best session for Australian shares since October 5.

The S&P/ASX200 benchmark index closed up 115.1 points, or 1.93 per cent, to 6066.4 on Tuesday.

The All Ordinaries closed higher by 115.4 points, or 1.88 per cent, to 6262.8.

The Aussie dollar was buying 70.45 US cents at 1627 AEDT, higher from 70.06 US cents at the close of trade on Monday.