The local sharemarket has fallen as the US-Israeli war with Iran dragged into its third week and hopes dimmed for a quick resolution.
The benchmark S&P/ASX200 index finished Monday down 33.7 points, or 0.39 per cent, to 8,583.4, while the broader All Ordinaries dropped 45.7 points, or 0.52 per cent, to 8,793.4.
The Australian dollar was changing hands for 70.07 US cents, from 70.63 US cents at 5pm on Friday.
It comes as a number of central banks, including Australia's, prepare to make decisions on interest rates, with the RBA expected to again hike rates at its March meeting this week.
“The debate at the March meeting will be a close one,” Commonwealth Bank Head of Australian economics Belinda Allen said last week. “But with inflation still above target and the economy running above trend, we expect the Board will choose to lift rates again and follow up with another move in May.”
