At closing bell, the benchmark S&P/ASX200 declined 57.06 points, or 0.84%, to 6,714.11. The broader All Ordinaries dropped 53.28 points, or 0.76%, to 6,947.15.
Australia's central bank chief on Wednesday rebuffed market talk of rate hikes, saying it will take at least until 2024 to reach full employment and that there was still a long way to go for the economy to fully recover.
RBA Governor Philip Lowe warned today wage growth, inflation and unemployment numbers were far from normal despite positive numbers. Pointing to housing, he said the central bank would be watching closely should lending standards deteriorate and financial risks increase. Consumer sentiment was up 2.6% in March, according to Westpac/Melbourne Institute.
Shares of materials and resources slipped after Chinese iron ore futures slumped on stricter anti-pollution measures in China's top steelmaking city of Tangshan. The more diversified Rio Tinto lost 5.5% to hit a more than four-week low, while rival BHP Group declined 2.8%. Fortescue Metals Group fell 8.3%.
The energy stocks tumbled, as oil prices remained under pressure. Woodside Petroleum slipped 2.7%, Santos fell 3.8% and Beach Energy declined 3.4%.
The heavily-weighted financials were also down. Commonwealth Bank of Australia and Westpac Banking fell 1.3% each, while National Australia Bank shed 1.5%. The smaller Australia and New Zealand Banking Group lost 2%.
In economic news, Australia Building Permits Drop 19.4% On Month In January- Australia total number of building permits in January dropped a seasonally adjusted 19.4% on month in January, the Australian Bureau of Statistics said on Wednesday, standing at 15,926 and following the 12% gain in December. Permits for private sector houses fell 12.2% on month, while private sector dwellings excluding houses plummeted 39.5%. On a yearly basis, overall building permits were up 19.0%, while private sector houses surged 38% and private sector dwellings excluding houses tumbled 22.7%.
Australia Westpac Consumer Confidence Rises 2.6% In March - Australia consumer confidence rose 2.6% to a score of 111.8 in March, the latest survey from Westpac Bank showed on Wednesday. That follows the 1.9% gain in February to 109.1. Australia's success in containing COVID-19, the promise of vaccine rollouts bringing an end to the pandemic, and support from stimulatory government policies have all contributed to the sustained lift. All components of the Index were higher in March. Confidence around the economic outlook led the gains with the 'economy, next 12 months' sub-index up 3.7% and the 'economy, next 5 years' sub-index up 2.3%.
CURRENCY NEWS: The Australian dollar fell below the $0.77 mark, down some 0.38% to $0.7682.
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