The Australian shares market has broken its two-day losing streak after US Federal Reserve chairman Jerome Powell pledged the US central bank would use all the tools at its disposal to support the world’s largest economy.

The benchmark S&P/ASX200 index closed Thursday up 44.7 points, or 0.74 per cent, at 6,051.1 points, while All Ordinaries index rose 49.5 points, or 0.81 per cent, at 6,177.5.

The Australian dollar was buying 71.53 US cents, up from 71.74 US cents at Wednesday’s close.