FX.co ★ Australian Shares Hit Over 1-Month Low

The S&P/ASX 200 index declined by 0.5% to settle at 8,840 on Monday, reaching its lowest point in over a month. This downturn came as investors exhibited caution in anticipation of the Reserve Bank of Australia's policy decision set for Tuesday. It is largely anticipated that the RBA will maintain interest rates, following three reductions earlier this year, given that both headline and trimmed mean inflation remained within the target range of 2–3% during the second quarter. According to the Melbourne Institute's Monthly Inflation Gauge, Australian inflation rose by 0.3% month-on-month in October 2025, slightly down from a 0.4% increase in the previous month. The healthcare sector experienced notable weakness, with shares of ResMed decreasing by 4.3%, Cochlear falling by 2.1%, and Pro Medicus declining by 1.5%. Meanwhile, financial stocks faced pressure, although Westpac saw a modest rise of 0.3% in its share price despite reporting a decrease in annual profits due to escalating costs and fierce margin competition. In contrast, DroneShield's shares surged by 4% following the announcement of a $25 million sales contract with a Latin American country for its AI-enhanced defense technology.