The local share market has proven unable to build on its four-day winning streak, closing modestly lower after some hawkish "Fedspeak" overnight by United States Federal Reserve officials.
The benchmark S&P/ASX200 index on Tuesday closed down 20.3 points, or 0.28 per cent, to 7131 while the broader All Ordinaries finished 19.2 points, or 0.26 per cent, lower at 7336.6.
Overnight a rally on Wall Street fizzled out after Fed officials Mary Daly and Raphael Bostic talked about raising rates to more than five per cent and leaving them there perhaps into 2024.
"Three words: a long time," Bostic told a moderator when asked how long he saw rates at more than five per cent.
"I am not a pivot guy. I think we should pause and hold there."
Still, Saxo Markets Australia analyst Jessica Amir said optimism was returning to the market as China reopened and copper prices - often seen as a proxy for economic activity - hit a six-month high.
She attributed Tuesday's dip to profit-taking after the string of gains, ahead of another monthly US inflation report to be released early on Friday, Sydney time.
Eight of the ASX's 11 sectors finished lower on Tuesday, the heavyweight mining sector the worst laggard, falling 0.6 per cent
BHP dropped 0.4 per cent to $47.80 after hitting a 17-month high of $48 on Monday.
Rio Tinto dropped 0.5 per cent to $118.23 while Fortescue Metals gained 0.7 per cent to $21.77 and South32 added 0.9 per cent to $4.45.
Goldminers Evolution and Northern Star were down by a little over two per cent, and Northern Star just under that figure, as investors digested the possible impact of higher interest rates on the price of the non-yield-bearing yellow metal.
The big banks had a quiet day, with NAB down 0.2 per cent to $29.93, Westpac up 0.2 per cent at $23.41, and ANZ and CBA flat at $23.72 and $103.32 respectively.
Insurers were all down, a day after IAG warned it was having to pay more for reinsurance coverage given the increasing number of natural peril events.
IAG dropped 2.3 per cent to $4.63, QBE retreated 2.7 per cent to $12.77 and Suncrop subtracted 1.7 per cent to $11.82.
It was a quiet day for company news.
In small caps, Cann Group added 2.4 per cent to 21c after the cannabis company appointed a former AstraZeneca and Bristol-Myers Squibb executive as its new CEO.
In currency, the Australian dollar retreated a bit after hitting a six-month high against its weakening US counterpart on Monday.
It was buying 69.09 US cents, from 69.38 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index closed Tuesday down 20.3 points, or 0.28 per cent, to 7131.
* The broader All Ordinaries dropped 19.2 points, or 0.26 per cent, to 7336.6.
One Australian dollar buys:
* 69.09 US cents, from 69.38 US cents at Monday's ASX close
* 91.17 Japanese yen, from 91.42 Japanese yen
* 64.37 Euro cents, from 64.95 Euro cents
* 56.80 British pence, from 57.10 pence
* 108.37 NZ cents, from 108.39 NZ cents.