ASX edges higher, Aussie cracks 65 US cents

The news: The Australian sharemarket edged higher on Monday, the benchmark ASX 200 gaining 0.28% to close at 6,997.40 after briefly breaking the 7000 level. The Aussie dollar reached its highest level since the beginning of September, rising on expectations of a cash rate increase at the Reserve Bank's monthly rates meeting tomorrow. It is currently buying 65.1 US cents.

The numbers: Health care stocks performed well, gaining 1.5% over the day with strong performances by Fisher and Paykel Healthcare (+3.3%), Resmed (+3.2) and Summerset Group (+6.4%). Energy stocks led the sector losses, falling 1.0%, with Whitehaven and New Hope giving up more than 2.2% each, and Paladin diving 4.7%.

The context: All eyes will be on the Reserve Bank for its rate decision tomorrow, with many economists expecting a 25 basis point increase after inflation data came in hot last month. Later in the week China will publish annual CPI and PPI figures, and on Friday US Federal Reserve Chairman Jerome Powell will take part in a panel discussion in Washington DC on global monetary challenges.