Australian shares fell on Friday, as bearish sentiment among traders struggled to offset gains from Australia's miners.
The S&P/ASX 200 Index edged up 16.8 points to 8346 in early trading before falling into the red. The index was down 0.1 per cent before 11am.
Seven of the sharemarket's 11 sectors recorded losses, led by consumer staples, healthcare and communications services stocks.
The sharemarket's materials sector rose 0.9 per cent after iron ore rose on Friday, extending a 0.6 per cent gain in the previous session that saw it top $US97 ($156) a barrel. The commodity was trading at $US97.15 a tonne on Friday morning.
The Australian dollar hit a fresh two-year low of US61.70 overnight. Much of the overnight damage came after Australian retail sales rose less than expected.
The news lead bond traders to increase expectations of the Reserve Bank of Australia making its first interest rate cut in February: money markets now imply a 74 per cent chance of a 25 basis point cut, down from 60 per cent the prior week. Any interest rate reduction is likely to weigh on the Aussie.
Mining heavyweights rose on the higher iron ore price. Rio Tinto rose 1.2 per cent, BHP lifted 0.9 per cent and Newmont Corporation rose 1.3 per cent. Critical Minerals explorer Iluka Resources lifted 3.5 per cent.
Gold miners rallied as the currency slumped. Emerald Resources rose 3.6 per cent and Vault Minerals rose 2.2 per cent.
Sims was the index's biggest gainer, rising 5.6 per cent.
Star Entertainment, meanwhile, plummeted 11.5 per cent, extending heavy losses in the previous session. Lenders have warned the Sydney and Gold Coast embattled casino owner could be in voluntary administration within months if a lifeline deal to preserve its future as a listed company fails to materialise. Jewellery retailer Lovisa also extended losses, falling 3.3 per cent.
Stocks in focus
Insignia Financial rose 1.7 per cent as bidders have continued to vie for the stock. But the company this morning denied reports in The Australian newspaper that Brookfield was weighing up a bid for the wealth giant.

Sumber : AFR