At noon AEDT on Tuesday, the benchmark S&P/ASX200 index was up 7.4 points, or 0.1 per cent, to 7,065.8, while the broader All Ordinaries was up 7.2 points, or 0.1 per cent, to 7,275.9.
Shortly before lunchtime the RBA released minutes from its November 7 meeting that indicated board members were very concerned about signs of a growing mindset among businesses that any cost increases could be passed onto consumers.
"A scenario prepared by the staff illustrated that even a modest further increase in inflation expectations would make it significantly more challenging and costly to return inflation back to target within a reasonable timeframe," the minutes read.
City Index market analyst Matt Simpson said the minutes read like the RBA was still set on another rate hike but would try to avoid one if possible.
With no RBA meeting in January, a hot consumer price index report next week could seal another 25 basis point "Christmas present to the masses", Mr Simpon wrote.
The Australian dollar hit a four-month high of 65.72 US cents following the minutes' release.Â
At midday the Aussie was buying 65.68 US cents, from 65.50 US cents at Monday's ASX close.
The ASX's 11 sectors were mixed, with three up and eight down.
Mining was the biggest mover with a 1.3 per cent gain.
BHP had added 1.4 per cent, Fortescue had gained 1.9 per cent and Rio Tinto was 2.6 per cent higher.
Northern Star had gained 2.3 per cent as the goldminer announced its drilling program had identified potential long-term growth opportunities across all three of its mining sites.
The Big Four banks were mixed, with NAB, ANZ and Westpac all down 0.2 per cent and CBA up 0.3 per cent.
SG Fleet Group had plunged 14.4 per cent to a four-month low of $2.20 after its second-largest shareholders, Ayvens, sold down its stake in the car leasing company.
