Australian shares were slightly higher in early trade Tuesday, although volumes were low with many investors sidelined awaiting the re-opening of US markets after a long weekend.

The markets were closed for the Labor Day holiday Monday.

'People are just being a little bit cautious as they don't know which way the US markets will move when they re-open,' said Ric Klusman, head of institutional trading at Aequs Securities.

At 10.45 am (0145 GMT) the S&P/ASX 200 was up 16.1 points, or 0.3 percent, at 6,283.4 and the All Ordinaries index was up 15.7 points, or 0.3 percent, at 6,288.2.

Index leader BHP Billiton was up three cents at 38.60 dollars while Rio Tinto was up 34 cents at 94.44 dollars.

Banks were weaker, with National Australia Bank down five cents at 39.87 dollars while Commonwealth Bank was off 11 cents at 55.16.

Conglomerate CSR was one the largest blue chip decliners, falling 17 cents, or 5.1 percent, to 3.16 dollars after warning that its year to March 2008 earnings will be five percent lower than the year before, due to a drop in profitability at its sugar mills.

Pallet supplier Brambles was up 10 cents at 13.98 dollars. It has now gained 24 percent since the start of August when speculation first began that it might become a takeover target.

Transport logistics group Toll Holdings has expressed an interest in Brambles, while transport infrastructure group Asciano, which was spun out of Toll earlier this year, has built up a small stake in the pallet supplier.

Toll was up 18 cents at 14.02 dollars and Asciano was up 12 cents at 8.69 dollars.