FX.co ★ Australian Shares Kick Off the Week Lower

On Monday, the S&P/ASX 200 index experienced a decline of 0.4%, settling at 8,600, effectively erasing the gains made in the previous week. This downturn occurred as investors adopted a more cautious stance ahead of the Reserve Bank of Australia's impending policy announcement. It is anticipated that the RBA will maintain the cash rate at 3.60% during its final meeting of the year on Tuesday, after implementing three rate cuts earlier this year. With renewed inflationary pressures and the most robust annual economic growth seen in two years, interest-rate swaps indicate that the central bank might decide to keep rates steady until early 2026, with an increasing likelihood of a rate increase following that period. The mining sector saw declines in light of falling iron ore prices, with notable players like Rio Tinto and Fortescue slipping by 1.7% and 0.5%, respectively. Likewise, despite bullish gold prices propelled by heightened expectations of a rate cut in the US, gold producers recorded losses, including Newmont Corporation, which fell by 2.5%, and Northern Star Resources, which dropped by 1.8%.