Dec 31 (Reuters) - Australian shares were set on Tuesday to post their best year in three, even as the benchmark index declined on the last trading session of 2024 as market heavyweights banks and miners fell.

The S&P/ASX 200 index .AXJO fell 0.5% to 8,192.9 by 2340 GMT and was on track to close the month about 3% lower, after hitting a record high of 8,514.5 earlier in December.

The benchmark has advanced 8% so far this year and is set for its biggest annual rise since 2021, helped mainly by gains in banks.

This year, the domestic economy battled high interest rates, shaky economic recovery in top trading partner China and threats of further tariffs from the incoming Donald Trump administration in 2025.

Financials .AXFJ fell 0.5% on Tuesday, with the "big four" banks down between 0.3% and 0.6%. The sub-index has risen nearly 29% so far this year.

A dovish shift by the Reserve Bank of Australia this month led investors to price in a roughly 50-50 chance of a rate cut as early as February. 0#AUDIRPR

Miners .AXMM slipped 0.9% to hit a one-week low after copper prices closed lower on Monday as market participants awaited economic data from top consumer China. MET/L

Copper miners BHP BHP.AX and Rio Tinto RIO.AX declined 1.1% and 0.5%, respectively.

Tracking a downturn in U.S. peers, tech stocks .AXIJ fell 0.8% in what could be their third straight session of losses. WiseTech Global WTC.AX and Xero XRO.AX shed 0.6% each. .N

Gold stocks .AXGD retreated 1.6% to hit their lowest in more than a week after bullion prices settled lower on Monday, with investors awaiting U.S. economic data next week for further clues on the Federal Reserve's monetary policy stance. GOL/

Northern Star Resources NST.AX and Evolution Mining EVN.AX retreated about 1% each.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7% to 13,184.93. For the year, it has risen about 12% in what would its biggest gain since 2020.

(Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)

((Sneha.kumar@thomsonreuters.com))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1