News: XGD Banks, miners drag Australian shares ahead of RBA minutes

Sept 19 (Reuters) - Australian shares fell on Tuesday, dragged by losses in heavyweight financial and mining stocks, ahead of the release of the central bank's last policy meeting minutes for insight into its interest rate trajectory.

The S&P/ASX 200 index (xjo) retreated 0.3% to 7,205.8 points by 0027 GMT after falling 0.7% on Monday.

The Reserve Bank of Australia's (RBA) minutes of its September meeting, due later in the day, will be closely assessed by investors for clues into where interest rates will stand going forward.

The RBA held rates steady for the third month in its last meeting, and indicated a firmer grip on inflation in the country.

"We expect the minutes to also reflect that minimal reassessment from the state of play in August. If the minutes continue to reflect that a hike was considered, it would support the tightening bias", National Australia Bank analysts said in a note.

Investors are also awaiting the U.S. Federal Reserve's interest rate decision on Wednesday, where a pause in rates in widely expected. FEDWATCH

In Sydney, rate-sensitive financial stocks .AXFJ retreated 0.5% with the "big four" banks falling between 0.5% and 0.9%.

Heavyweight mining stocks .AXMM slid 0.4%, tracking a fall in iron futures on concerns over China's ailing property sector.

Sector majors BHP Group (BHP) and Rio Tinto (RIO) slipped 0.8% and 0.4% respectively.

Bucking the trend, gold stocks .AXGD jumped 1.4% tracking an uptick in bullion prices.

Energy stocks .AXEJ climbed 0.5% after oil prices rose due to a tight supply outlook, which offset demand concerns.

Shares of miner New Hope Corp (NHC) rose 1.5% after it reported a nearly 11% rise in its fiscal 2023 profit, boosted by strong demand and realised coal prices.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index (nz50) retreated 0.2% 11,374.09 points.