FX.co ★ Australian Shares Hit Fresh All-Time High

The S&P/ASX 200 index experienced a 0.5% increase to reach 8,850 on Monday, setting a new record high as investors anticipated the upcoming monetary policy announcement from the Reserve Bank of Australia (RBA) scheduled for Tuesday. Market analysts broadly expect a 25 basis point reduction to 3.60% during the August meeting. This follows the RBA's previous decision in July to maintain the interest rates at 3.85%, a move that surprised many who predicted a cut. At that time, the RBA highlighted a more balanced view on inflation risks and the ongoing strength in the labor market as factors for their prudent approach. However, despite the anticipated adjustment in rates, uncertainty remains. RBA Governor Michele Bullock, speaking after the decision in July, underlined that the central bank would not provide forward guidance moving forward, emphasizing that decisions are determined solely by the board and cannot be forecasted before meetings. In the mining sector, major companies such as BHP Group, Rio Tinto, and Fortescue exhibited positive performance with share prices increasing by 1.8%, 1.5%, and 1.3%, respectively. In contrast, Block, Inc. experienced a significant 9.1% decline, reaching its lowest point in a week.