FX.co ★ ASX 200 Snaps Two-Day Rise Ahead of RBA Rate Decision

The ASX 200 fell 52 points, or 0.6%, to close at 8,857 on the first trading day of the new month, snapping a two-session winning streak as investors turned cautious ahead of Tuesday’s Reserve Bank of Australia policy decision. The central bank is widely expected to deliver its fifth rate increase this year in an effort to rein in persistent inflationary pressures.

Sentiment was further tempered by mixed manufacturing data from China, Australia’s largest trading partner: the official PMI unexpectedly slipped into contraction, while a private survey pointed to continued expansion.

Losses were partially contained by a solid rebound in U.S. stock futures, supported by a pullback in oil prices amid reports that the U.S. and Iran are pursuing diplomatic efforts to ease tensions in the Middle East.

On the sector front, non-energy minerals, healthcare, logistics, and financials led the declines, while pockets of strength emerged in transport, consumer, and industrial services stocks. Three of the four major banks ended lower, and heavyweight miners BHP Group (-1.5%) and Rio Tinto (-1.2%) also retreated. Gold producers weakened as well, led by Northern Star Resources, which dropped 4.5%.