* ASX 200 posts strongest close since Dec 2007
* Initial caution over U.S. Fed meet smashed by RBA rate-cut plans
* Trading volumes high ahead of qtrly futures expiry date (Updates to close)
June 18 (Reuters) - Australian shares closed at their highest in more than 11 years on Tuesday as an indication of future policy easing by the country's central bank triggered strong buying.
The S&P/ASX 200 index .AXJO rose 0.6% or 39.1 points to 6,570.0 at the close of trade. The benchmark fell 0.4% on Monday. Trading volumes were at their highest in nearly three months, ahead of the quarterly futures expiry later in the week.
While caution ahead of a two-day U.S. Federal Reserve policy meeting prompted early defensive buys into healthcare and gold stocks, dovish cues from the Reserve Bank of Australia (RBA) around midday pushed most sectors to end stronger.
Minutes of the RBA's latest meeting, which was when the bank had cut its benchmark interest rate, showed that the bank believed further interest cuts were necessary to boost Australia's flagging economy. stocks contributed to most gains on the benchmark, with Commonwealth Bank of Australia CBA.AX , the country's largest lender, closing 1.6% higher.
Healthcare stocks .AXHJ closed at their highest level in more than nine months, with CSL Ltd CSL.AX , the fifth largest stock on the ASX 200, ending 1.8% higher. The healthcare subindex ended up 1.3%.
Gold stocks .AXGD rose 1.5%, with Newcrest Mining NCM.AX , the country's largest gold producer, up 1.1%. Gold miners have benefited from recent risk-aversion.
Australia's number-two grocer, Coles Group COL.AX , closed 3.5% higher after it outlined plans to cut A$1 billion ($685 million) in costs over the next four years. technology developer Nearmap Ltd NEA.AX was the largest intraday gainer on the ASX 200, closing 9.5% higher having garnered increasing broker interest over the past week. Zealand shares ended slightly higher as gains across utilities and telecommunications were offset by a drop in heavyweight consumer stocks.
The benchmark S&P/NZX 50 index .NZ50 rose 0.2% or 21.07 points to finish the session at 10,191.33.
Electricity retailer Meridian Energy MEL.NZ ended 2% higher, while a2 Milk ATM.NZ dropped 2.7%.