At 10:30 (AEST), the benchmark S&P/ASX 200 index was down 21.90 points or 0.33 percent at 6,693.50, while the broader All Ordinaries index was down 23.70 points or 0.34 percent at 6,963.10.
The materials sector slumped under weight from the country's iron ore miners.
"Shares and crude oil broke recent winning runs, and bonds rallied as international investors turned to the U.S. dollar."
Meanwhile a lower commodity price weighed on oil companies, dragging the energy sector close to one percent lower, while industrials also fell.
Other sectors were improved with tech leading gains and healthcare stocks lending support.
In the financial space, the big banks dropped with Commonwealth Bank down (0.36 percent), ANZ down (0.89 percent), National Australia Bank down (0.89 percent) and Westpac Bank down (0.23 percent).
Mining stocks slumped with Rio Tinto down (2.17 percent), Fortescue Metals down (1.79 percent), BHP down (3.01 percent) and goldminer Newcrest down (0.32 percent).
The country's oil and gas producers sank with Oil Search down (2.27 percent), Santos down (1.62 percent) and Woodside Petroleum down (1.68 percent).
Australia's largest supermarkets bounced with Coles up (0.31 percent), and Woolworths up (0.43 percent).
Meanwhile telecommunications giant Telstra dropped (0.32 percent), the national carrier Qantas sank (0.41 percent) and biomedical firm CSL jumped (0.75 percent).
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