The S&P/ASX200 fell 10.2 points on Monday, down 0.12 per cent, to 8,624.4, as the broader All Ordinaries gave up 11.1 points, or 0.12 per cent, to 8,915.
Traders struggled to get excited by the price action, which came off the back of a quiet week but ahead of key central bank meetings in the coming days, IG market analyst Tony Sycamore said.
"But the big one, of course is the RBA and that's, I think, why our market has continued to struggle last week and really hasn't been able to do too much today," Mr Sycamore told AAP.
"And the rates market now is getting out towards where we've got a full rate hike priced in by August and no less two hikes priced for 2026."
Weakness in raw materials, energy stocks and utilities led eight of 11 local sectors lower, while only communications stocks offered some decent resistance, lifting 1.1 per cent.
Online real estate platform owner REA Group was the best of the bigger telecommunications players, rallying 1.9 per cent to $193.88, catching a bid after hitting a 14-month low the week before.
The heavyweight financials sector managed to carve out a modest 0.2 per cent gain, as CBA and Westpac improved, but ANZ and NAB fell behind.
Raw materials weighed heavily on the bourse, fading 0.8 per cent as a surging China trade balance dragged iron ore prices lower to $US106.45 a tonne.
BHP fell 0.8 per cent to $44.47 while Rio Tinto lost 0.9 per cent to $137.18.
Gold stocks were also in the red, as gold prices clung to around $US4,207 ($A6,335) an ounce, sending names like Evolution, Newmont and Perseus more than two per cent lower.
Liontown Resources was the top-200's best performer, up more than 15 per cent on Monday to $1.52.
Pilbara Minerals enjoyed a six per cent boost from the renewed interest in lithium plays, while Lynas Rare Earths slipped 3.8 per cent to $13.61 but showed signs of interest as its approached November's low.
Energy stocks dipped 0.4 per cent lower despite segment giants Woodside and Santos edging either side of break-even, as most coal producers and uranium plays sold off by between two and four per cent.
Uranium enrichment technology Silex Systems was the worst performer of the top-200, tumbling 7.7 per cent and wiping most of the gains from the previous week's rally.
With the Reserve Bank all but certain to hold the cash interest rate at 3.6 per cent on Tuesday, investors will be combing official speeches for hints of what lies ahead for borrowing costs and the broader economy.
"The RBA heads into its final meeting of the year this week, facing a completely different set of challenges than its global peers," eToro market analyst Farhan Badami said.
"Markets expect a hold this week, but it's likely that the RBA will strike a hawkish tone, and that will certainly put markets under pressure."
The Australian dollar is trading at 12-week highs against the greenback, buying 66.46 US cents, up from 66.23 US cents on Friday at 5pm.
ON THE ASX:
* The S&P/ASX200 fell 10.2 points, or 0.12 per cent, to 8,624.4
* The broader All Ordinaries gained 11.1 points, or 0.12 per cent, to 8,915
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 66.46 US cents, from 66.23 US cents at 5pm on Friday
* 103.14 Japanese yen, from 102.38 Japanese yen
* 56.99 euro cents, from 56.80 euro cents
* 49.82 British pence, from 49.63 British pence
* 114.85 NZ cents, from 114.77 NZ cents
