* RBA sees upside risks to inflation in Oct policy meeting

* Rio Tinto rises 1.4%

* NZX 50 snaps three straight days of losses

Oct 17 (Reuters) - Australian shares closed higher on Tuesday, led by banks and miners after Rio Tinto reported a strong quarterly output, while the minutes of the central bank's latest policy meeting showed further tightening may be required to bring inflation to heel.

The S&P/ASX 200 index ended 0.4% higher at 7056.10. The benchmark fell 0.4% on Monday.

Minutes of the Reserve Bank of Australia's (RBA) Oct. 3 policy meeting released on Tuesday showed the central bank was concerned that inflation was not slowing as expected, suggesting higher chances of the 4.1% cash rate being lifted next month.

The unemployment report, due on Thursday, is expected to provide clues on the country's future rate trajectory.

"I don't think it's going to be too much out of the projections, but if anything, the unemployment might be just be a little bit higher", said Brad Smoling, managing director at Smoling Stockbroking.

Financials rose 0.8%, with the 'Big Four' banks gaining between 0.4% and 0.7%.

"I think investors are cautiously going back into banks as they're sensing that the rate rises will be over or nearly over in some amount of time", Smoling said.

Miners jumped 0.7% to hit a four-week high, with the world's largest iron ore producer Rio Tinto gaining 1.4% after it reported a rise in third-quarter iron ore shipments, as it ramped up production at the Gudai-Darri mine.

However, gold stocks dropped 0.2% as prices fell ahead of economic data and the U.S. Federal Reserve Chair's speech this week.

Resolute Mining and Pantoro slumped 6.6% and 5.1%, respectively, to lead declines on the sub-index.

New Zealand's benchmark S&P/NZX 50 index closed 0.3% higher at 11214.37, snapping three consecutive sessions of losses.

Data showed the country's consumer inflation slowed to a two-year low in the third quarter, reducing expectations that the central bank will hike the cash rate further in November. (Reporting by Adwitiya Srivastava in Bengaluru; Editing by Sonia Cheema)