At midday AEDT on Tuesday the benchmark S&P/ASX200 index was up 61.6 points, or 0.73 per cent, to 8,509.5, while the broader All Ordinaries had climbed 60.3 points, or 0.69 per cent, to 8765.3.
The ASX200 had been as high as 8,514.5, shattering Thursday's intraday record of 8,477.1.
Institute for Supply Management manufacturing data released overnight in the US showed that activity shrank less than expected.
NAB senior FX strategist Rodrigo Catril said the report, and contrasting readouts globally, supported the idea that US exceptionalism still had more room to run.
Following the report, the future's market's implied odds for a Fed rate cut in two weeks rose to 75 per cent, from 66 per cent a day previous, according to CME FedWatch.
Ten of the ASX's 11 sectors were higher at midday, all except its small utility sector.
Health care was the biggest gainer, rising 1.1 per cent. Pro Medicus had climbed 3.0 per cent and Ramsay Health Care had grown 2.8 per cent.
The Star was the biggest gainer in the ASX200, rising 7.1 per cent to 22.5 cents after the cash-strapped casino operator said it had been able to draw down $100 million in debt from its new debt facility.
Zip was down 1.5 per cent after the buy now, pay later company announced that its co-founder Larry Diamond would step down as a director and US chairman to focus on his philanthropic endeavours.
All of the big four banks were higher, with Westpac up 1.4 per cent, ANZ adding 1.1 per cent, NAB climbing 0.9 per cent and CBA rising 0.4 per cent.
In the heavyweight mining sector, BHP had edged 0.2 per cent higher, Fortescue had gained 2.3 per cent and Rio Tinto had added 0.3 per cent.
The Australian dollar was buying 64.64 US cents, from 65.01 US cents at Monday's ASX close.
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