SYDNEY, AAP – Investors received gains and a reprieve from the threat of imminent rate rises in a happy start to February trading on the ASX.

The market closed higher by 0.49 per cent on Tuesday after the Reserve Bank kept rates steady and rebutted the prospect of higher rates soon.

Technology shares gained two per cent after support for their giant US peers overnight.

The benchmark S&P/ASX200 index closed up 34.4 points, or 0.49 per cent, to 7006 points.

The All Ordinaries index closed higher by 44.5 points, or 0.61 per cent, to 7312.8 points.

The Australian dollar dropped a little after the RBA decision but stayed within the 70 US cents band.

The dollar was buying 70.63 US cents at 1622 AEDT, higher from 70.14 US cents at Monday’s close.