Australian shares rally ahead of key inflation readout

The Australian Securities Exchange reached a 10-day high of 8,000 - but for less than a minute. (Steven Saphore/AAP PHOTOS)

The local share market has rallied at the start of a busy week of central bank meetings overseas and a key inflation readout domestically.

The benchmark S&P/ASX200 index closed Monday up 68.3 points, or 0.86 per cent, to 7,989.6, while the broader All Ordinaries gained 70.9 points, or 0.87 per cent, to 8,224.3.