The share market has recovered from early falls as exporters benefit from a weaker Australian dollar and commodity prices boosted the big miners.

The Reserve Bank lowered its inflation forecasts, increasing the chances of another cash rate cut and therefore causing a fall in the Australian dollar.

IG markets analyst Angus Nicholson said this increased demand for stocks such as Treasury Wine Estates and Sydney Airport.

“There was also stabilisation in commodity prices, partly because of stronger iron ore prices,” he said.

“We saw quite a bit of buying in the materials sector.”

Treasury Wines added 21 cents to $9.98, Sydney Airport rose seven cents to $7.13 and Flight Centre gained $1.40 to $39.50.

In the mining sector, BHP Billiton edged three cents higher to $18.46 cent after Brazil’s federal court ratified a settlement reached with the country’s authorities over a deadly dam spill.

Rio Tinto shares dropped 31 cents to $47.75 and Fortescue Metals gained eight cents to $3.11.

The banks were mixed, with NAB and Westpac both more than one per cent higher, while ANZ and Commonwealth Bank each fell by around 0.7 per cent.

Mr Nicholson said further volatility is expected for the US dollar and oil in the coming days.

KEY FACTS:

* At the close on Friday, the benchmark S&P/ASX200 index was up 12.9 points, or 0.24 per cent, at 5,292 points.

* The broader All Ordinaries index was up 14.1 points, or 0.26 per cent, at 5,358.6 points.

* The June share price index futures contract was down 13 points at 5,253 points, with 48,397 contracts traded.

* National turnover was 2.9 billion securities traded, worth $7.6 billion.