Shares finished slightly lower on Monday after the Australian dollar struggled to resist the selling pressure and the banks failed to pull the bourse higher.
All eyes were on the greenback, which strengthened considerably as investors almost entirely price in a rate hike by the US Federal Reserve in December.
The benchmark S&P/ASX200 Index and the broader All Ordinaries Index each fell 0.2 per cent to 5351 points and 5419 points respectively.
“Outside of the energy sector and gold miners there’s not much to smile about for investors on Monday,” said Gary Huxtable, client advisor at Atlantic Pacific Securities.
“The markets are in an extremely tight range now due to the weight of macro themes – rising US bond yields, strong US dollar and a temporary end to the commodity euphoria,” he said.
Energy and real estate enjoyed moderate lifts, while healthcare and consumer staples weighed on the bourse. Except for ANZ, the big four banks closed up slightly though there was not enough buying momentum to lift the broader market.
Gold companies, which have enjoyed investor attention this year amongst the geopolitical turmoil have experienced a sharp selloff since the US election as investors decide they don’t need safe haven assets.