At the market close, the benchmark S&P/ASX 200 index was down 59.50 points or 0.86 percent at 6,821.20, while the broader All Ordinaries index was down 58.70 points or 0.82 percent at 7,102.10.
"The Aussie market has failed to follow Wall Street higher with another record session for major US indices overnight," Commsec market analyst James Tao said.
All sectors were trending lower, with real estate and utilities suffering the heaviest losses of the day at 2.12 percent and 1.36 percent respectively.
In the financial space, Australia's big banks dived with the Commonwealth Bank down (1.35 percent), ANZ down (1.85 percent), National Australia Bank down (1.69 percent) and Westpac Bank down (1.25 percent).
Mining stocks mixed with Rio Tinto down (0.54 percent), BHP down (0.54 percent) and Fortescue Metals up (0.72 percent), gold miner Newcrest up (0.04 percent).
The country's oil and gas producers dipped with Oil Search unchanged (0.00 percent), Santos down (0.28 percent) and Woodside Petroleum down (0.74 percent).
Australia's largest supermarkets dived with Coles down (1.25 percent), and Woolworths down (1.51 percent).
Meanwhile, telecommunications giant Telstra dropped (0.95 percent), the national carrier Qantas lifted (1.26 percent) and biomedical firm CSL slumped (1.27 percent).
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