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Australian shares marginally fell on Friday, with financials and mining stocks leading losses, while investors exercised caution ahead of the central bank’s monetary policy meeting next week.

The S&P/ASX 200 index fell 0.2% to 7,735.30 by 0032 GMT.

The benchmark was down 1.6% for the week. The Reserve Bank of Australia is scheduled to announce its cash rate on June 18.

According to a Reuters poll, the central bank is expected to keep rates steady at 4.35%.

A sombre mood prevailed across indexes in the local bourse.

Rate sensitive financial stocks fell as much as 0.4%, with the “Big Four” banks losing between 0.03% and 0.6%.

The sub-index is on track for its worst week since mid-April.

Despite upbeat iron ore prices, mining stocks fell as much as 0.4% to their lowest level since March 27, on track for its fourth consecutive session of losses.

The sub-index is headed for its worst week since Aug. 18, 2023.

Tracking overnight losses from falling bullion prices, gold stocks declined as much as 1.9% to their lowest level since April 2.

Gold miners Evolution Mining and Northern Star Resources fell as much as 2.7% and 1.7%, respectively.

Australian shares hit record high; RBA cautious on inflation

Meanwhile, energy stocks gained as much as 0.4% underpinned by strong oil prices.

Energy majors Woodside Energy and Santos rose as much as 0.2% and 0.7%, respectively.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 11,861.01 points.

The country awaits its first-quarter gross domestic data due on June 20.

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