FX.co ★ Australian Shares Start Week Lower as RBA Decision Looms

Australian shares slipped 26 points, or 0.3%, to 8,883 in early trade on Monday, giving back recent gains as technology, non-energy minerals, and healthcare stocks retreated. Investor caution dominated ahead of Tuesday’s Reserve Bank of Australia policy meeting, with the central bank widely expected to lift the cash rate for the fifth time this year to 4.85% in response to persistent inflationary pressures.

Sentiment was also weighed down by data from key trading partner China, where official figures showed an unexpected contraction in manufacturing activity in October, partly reflecting the impact of the Golden Week holiday.

Losses on the local market were limited, however, by fresh data indicating a rebound in Australian building approvals in September, led by a recovery in private-sector dwellings excluding houses.

On Wall Street, U.S. stock futures firmed ahead of another wave of corporate earnings, key labor market data, and the upcoming midterm elections.

Among major miners, BHP Group declined 1.1% and Rio Tinto fell 1.4%. Gold producers were also weaker, with Northern Star down 3.9% and Evolution Mining off 2.5%. By contrast, the four major banks advanced between 0.2% and 1.6%.