FX.co ★ Australian Shares Fall Ahead of RBA Decision

The S&P/ASX 200 index experienced a decline of 0.4% to close at 8,586 on Tuesday, continuing the downward trend from the previous session. This movement reflects investor caution ahead of the Reserve Bank of Australia's policy decision anticipated later in the day. It is widely expected that the central bank will maintain the cash rate at 3.60% for the third meeting in a row, a level that has remained constant since August 2025, when the RBA last made a rate adjustment. Market participants are keenly observing any indication of a shift towards a more hawkish stance, which could point to potential interest rate hikes in the coming year. Among the sectors, financial stocks were particularly weak, with Commonwealth Bank of Australia, Westpac Banking Corporation, and ANZ Group Holdings seeing decreases of 0.8%, 1.3%, and 0.6%, respectively. Conversely, major mining stocks showed stronger performance, with Rio Tinto and Fortescue Metals Group posting gains of 1% and 1.1%, respectively.