Australian shares have closed higher amid a strong performance by Afterpay, CSL, ANZ and Woolworths.

The benchmark S&P/ASX200 index finished Tuesday up 25.4 points, or 0.37 per cent, at 6,948.7, while the broader All Ordinaries index gained 27.7 points, or 0.39 per cent, to 7,047.6.

The Aussie was buying 67.17 US cents, up from 67.02 US cents at the market close on Monday.