The ASX 200 fell 13 points, or 0.2%, to end at 8,831 on Monday, retreating from a one-week high and swinging from the prior session’s rally.
Sentiment weakened after Australia's job ads eased for a third time this year in June, underscoring the drag from higher borrowing costs.
Caution also emerged ahead of June CPI and PPI data from main trading partner China, due later this week.
Still, stronger U.S. stock futures helped limit losses ahead of the Fed’s June meeting minutes.
Meanwhile, a softer inflation gauge from the Melbourne Institute added to signs of cooling cost pressures.
Industrial services, consumer names, and non-energy minerals led declines.
The big four banks shed between 0.1% and 1.1%.
Supermarket majors Woolworths (-1.1%) and Coles (-0.4%) lagged, with the sector down 1.6% so far in July after a 13% surge in June.
In contrast, Vault Minerals jumped 11.6% after Genesis Minerals launched an AUD 5.6 billion takeover bid, topping Regis Resources’ May proposal.