The benchmark S&P/ASX200 index on Monday dropped 24 points, or 0.31 per cent, to 7,700.3, while the broader All Ordinaries fell 31.2 points, or 0.39 per cent, to 7,943.6.
The outcome of the Reserve Bank's two-day meeting, one of eight for the year, will be announced on Tuesday afternoon.
"We expect the RBA to remain on hold and reiterate current guidance the Bank is not 'ruling anything in or out'," JP Morgan analysts Ben Jarman, Tom Kennedy and Jack Stinson wrote in a client note.
That's the consensus of most experts and commentators, although the futures market's pricing implies 1-in-20 odds the RBA surprises nearly everyone with a rate cut.
The Bank of England, Swiss National Bank, People's Bank of China and Norway's Norges Bank will also hold meetings this week.
The SNB in March became the first major central bank to cut rates this cycle, but it may not do so again this week after Swiss inflation held steady in May.
Domestically, a monthly survey of job ads released on Monday by ANZ and help-wanted website Indeed showed Australia's labour market continued softening in May, but remains well above pre-pandemic levels.
Six of the ASX's 11 sectors finished in the red on Monday, with five in the green.
The tech and energy sectors were the biggest movers, both dropping 1.5 per cent.
Wisetech Global fell 4.1 per cent, Nextdc dropped 1.8 per cent and Woodside Energy retreated 1.0 per cent.
There was more pain for uranium companies, which have been giving back some of their phenomenal gains for the year recently as yellowcake prices slip.
Boss Energy fell 3.1 per cent to a six-month low, while Paladin Energy and Deep Yellow retreated to seven-week lows, down 4.9 and 4.5 per cent on the day, respectively.
In the heavyweight mining sector, mid-tier goldminers made up for some of last week's losses as the precious metal rebounded to $US2,317 an ounce, after dropping below $US2,300 last week.
West African Resources rose 2.5 per cent, De Grey added 1.5 per cent and Red 5 advanced 2.3 per cent. Newmont, the largest goldminer, gained 0.4 per cent, but Northern Star dipped 0.4 per cent and Evolution fell 1.4 per cent.
Elsewhere in the sector, BHP dropped 1.3 per cent to $42.54, Fortescue fell 1.0 per cent to $22.98 and Rio Tinto retreated 1.7 per cent to $118.16.
All of the Big Four banks finished higher, with Westpac and NAB both adding 0.7 per cent, to $26.97 and $35.26, respectively, while ANZ climbed 0.2 per cent to $28.80 and CBA edged 0.1 per cent higher at $125.49.
In the health care sector, Capitol Health rose 10.2 per cent to a five-month high of 27 cents and Integral Diagnostics slipped 4.3 per cent to $2.43 after the two regional diagnostic imaging chains agreed to an all-scrip merger Integral CEO Ian Kadish said could transform the Australian industry.
Adbri finished at $3.19 in the concrete company's final day of trading on the ASX after 62 years on the bourse. Irish building material company CRH has acquired the company formerly known as Adelaide Brighton for $2.1 billion.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday dropped 24 points, or 0.31 per cent, to 7,700.3.
* The broader All Ordinaries fell 31.2 points, or 0.39 per cent, to 7,943.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.94 US cents, from 66.13 US cents at Friday's ASX close
* 103.78 Japanese yen, from 104.51 Japanese yen
* 61.67 euro cents, from 61.71 euro cents
* 52.06 British pence, from 51.94 pence
* 107.90 NZ cents, from 107.77 NZ cents
