The local share market has closed in the red after the Reserve Bank delivered its fifth interest rate hike in the past five months.
The benchmark S&P/ASX200 index on Tuesday closed down 25.7 points to 6826.5, a 0.38 per cent drop.
The broader All Ordinaries was 18.6 points lower at 7055.9, a 0.26 per cent decline.
The market had been more or less treading water but fell after the Reserve Bank hiked the cash rate by 0.5 percentage points, or 50 basis points, to 2.35 per cent.
"A bit of negative reaction from markets, just because it was 50 and not 25 (basis points) - there was a small chance it was going to be a bit less," Betashares chief economist David Bassanese told AAP.
The question now is whether the the RBA will keep hiking rates by 50 basis points each month, or move to a less aggressive rate-hike campaign, Mr Bassanese said.
"My base case is that that's the last of the 50 point moves," he said.
Just two of the ASX's 11 official sectors - energy and tech - gained ground on Tuesday. Telecommunications and property were flat and everything else collectively lost ground.
The heavyweight mining sector dropped 0.7 per cent despite a strong performance from lithium producers on the back of broker upgrades.
BHP fell 1.7 per cent to $37.27, Rio Tinto declined 1.1 per cent to $90.80 but Fortescue Metals rose 0.2 per cent to $16.44.
Pilbara Minerals was up 7.0 per cent to an all-time closing high of $3.96, Allkem jumped 4.3 per cent to $14.06 and Core Lithium soared 9.9 cent to $1.495.
The big banks all finished modestly lower. Westpac and CBA both dipped 0.4 per cent, to $21.27 and $96.11 respectively, while NAB dropped 0.3 per cent to $30.24 and ANZ declined 0.2 per cent to $22.59.
Insurance companies fared better, with QBE rising 1.8 per cent, IAG up 0.9 per cent and Suncorp gaining 0.4 per cent.
Magellan Financial Group was down 2.0 per cent to a month-and-a-half low of $12.19 after the fund manager announced its assets under management had shrunk again in August, by $1.3 billion to $57.6b.
In the energy sector, coalminers were again showing strength as Russia pledged not to resume gas flows to Europe until sanctions were lifted, meaning countries may have to turn to coal imports to get through the winter.
Whitehaven rose 3.7 per cent to an all-time high of $8.80, New Hope was up 6.1 per cent and Yancoal added 6.3 per cent.
Elsewhere in the sector, Woodside was flat at $35.08 and Beach Energy rose 2.0 per cent to $1.76.
Woolworths dipped 0.2 per cent to $36.87 after Mydeal.com.au shareholders approved Woolworths' acquisition of 80 per cent of MyDeal stock, meaning the takeover could take effect as soon as next week.
The Australian dollar, meanwhile, rebounded slightly after hitting a six-week low against the greenback. It was buying 67.92 US cents, from 67.81 US cents at Monday's close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Tuesday finished 25.7 points lower at 6826.5, a 0.38 per cent gain.
* The broader All Ordinaries dipped 18.6 points, or 0.26 per cent, to 7055.9.
One Australian dollar buys:
* 67.92 US cents, from 67.81 US cents at Monday's close
* 95.84 Japanese yen, from 95.23 yen
* 68.07 Euro cents, from 68.48 cents
* 58.53 British pence, from 58.13 pence
* 111.44 NZ cents, from 111.35 cents.