At the market close the benchmark S&P/ASX 200 index was down 18.10 points or 0.27 percent at 6,679.10, while the broader All Ordinaries index was down 20.40 points or 0.29 percent at 6,939.10.
"The Aussie market was unable to hold onto its improvements at lunch with the ASX 200 giving up gains of around 36 points or 0.5 percent," CommSec market analyst James Tao said.
Losses from materials, information technology and healthcare dragged the local market lower.
"Losses could've been even more severe if not for the financial sector. The big four banks in particular ended in positive territory and gained as much as 1.10 percent," he said.
In the financial space, the big banks surged with Commonwealth Bank up (0.85 percent), National Australia Bank up (1.08 percent), Westpac Bank up (0.99 percent) and ANZ up (0.84 percent).
Mining stocks fell with BHP down (1.08 percent), Rio Tinto down (0.81 percent), Fortescue Metals down (0.32 percent) and gold miner Newcrest down (0.72 percent).
The country's oil and gas producers varied with Oil Search down (1.18 percent), Santos up (0.42 percent) and Woodside Petroleum down (0.55 percent).
Australia's largest supermarkets slipped with Coles down (0.49 percent), and Woolworths down (0.03 percent).
Meanwhile telecommunications giant Telstra lifted (0.33 percent), the national carrier Qantas slumped (1.63 percent) and biomedical firm CSL slumped (1.04 percent).
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