Derek Rose
(Australian Associated Press)

Australian shares finished higher for a third straight day, bolstered by mining and transportation stocks while the financial sector sagged as investors took profits.

The benchmark S&P/ASX200 index closed up 20.2 points, or 0.34 per cent, at 6,026.1 points at 1615 AEDT on Wednesday, while the broader All Ordinaries was up 23.7 points, or 0.39 per cent, at 6,091.8.

The Australian dollar dropped more than one per cent, meanwhile, after Reserve Bank Governor Philip Lowe said it was possible Australia’s cash rate might be cut further.

The Aussie was buying 71.54 US cents, down from 72.35 cents on Tuesday.