Australian shares dip as Westpac weighs on banks ahead of RBA decision

Australian shares experienced a dip on Monday as losses in Westpac impacted the banking sector, while mineworkers' gains balanced the market prior to the Reserve Bank of Australia's decision. The S&P/ASX 200 index closed at 9,220.30 points down 0.5% as of 0057 GMT, after a 3.2% increase last week. The financial sector took a hit after Westpac, Australia's third-largest bank, saw its shares fall more than 5%, the largest intraday decline since March 30.

The lender anticipated a significant drop in housing credit growth and reported a 20% decrease in mortgage applications. Westpac's earnings for the quarter ending June 30 were A$1.8 billion, down from A$1.9 billion a year earlier. Financials sub-index declined 1.9% due to Westpac's setback, with Commonwealth Bank of Australia, ANZ, and National Australia Bank shares falling between 1.3% to 2.4%.

Markets are eagerly awaiting the RBA's decision on Tuesday, with expectations of a rate hike remaining. Miners, however, managed to bounce back, jumping 1.4%, driven by strong metal prices. BHP Group and Rio Tinto rose above 1% each, while Fortescue added 0.7%. The gold sub-index followed suit, soaring more than 3% to its highest level since mid-April, reflecting gains in bullion prices.

Treasury Wine Estates' shares surged nearly 8% after the winemaker announced a reduction in its U.S. North Coast vintages and inventory write-downs, with earnings expectations exceeding forecasts. New Zealand's S&P/NZX 50 index also rose by 0.5% to 13,892.88 points.