Australian shares fell, tracking Asian markets as investors prepare for a busy week of central bank meetings.

The S&P/ASX 200 Index fell 0.6% or 46.5 points to close at 8,249.5.

Interest rates are expected to drop in the US and Sweden this week, with no change in Japan, the UK, and Norway, with investors widely expecting the US Federal Reserve to cut interest rates by 0.25% at its meeting, Reuters said.

In domestic trade, Australia's private-sector business activity fell in December as growth in the services sector eased, while business optimism reached a two-year high, according to a survey by S&P Global.

The S&P Global Flash PMI Composite Output Index fell to 49.9 in December from 50.2 in November, marking its lowest level in three months.

The Reserve Bank of Australia (RBA) said domestic household consumption and China's fiscal spending are two key uncertainties that it is keeping an eye on in its forecast scenarios, according to Assistant Governor Sarah Hunter in a speech made on Dec. 13.

In company news, Worley (ASX:WOR) agreed to provide reimbursable engineering, procurement, and construction services to ExxonMobil for the latter's planned low-carbon hydrogen and ammonia facility in Texas.

Digico Infrastructure REIT's (ASX:DGT) shares fell 5% at market close, following its debut on the Australian bourse on Dec. 13.

Magellan Financial Group (ASX:MFG) director John Eales sold 59,550 units in Magellan Global Fund for AU$3.40 apiece. The company's shares slid 2% at market close.