The local share market has snapped a three-day winning streak, dragged slightly lower by weakness in the mining sector.
The benchmark S&P/ASX200 on Tuesday finished 18.3 points down at 7,999.3, a drop of 0.23 per cent, while while the broader All Ordinaries slipped 19.1 points, or 0.23 per cent, to 8,243.3.
It was still the ASX200's second-highest close, with the index finishing above 8,000 for the first time on Monday.
Dovish comments overnight by Fed chairman Jerome Powell about inflation being tamed led to increased bets the US central bank would cut interest rates three times in 2024, with the market's implied pricing for that event now at more than 60 per cent.
Domestically, the ANZ-Roy Morgan weekly consumer confidence survey showed no sign of improvement, hitting its second-lowest level since early December.
Seven of the ASX's 11 sectors ended lower, three closed higher and consumer staples finished flat.
The heavyweight materials sector dropped 0.9 per cent on losses from BHP and Rio Tinto.
Rio slipped 2.5 per cent to a four-month low of $116.81 after the mining giant forecast decreased copper and alumina production this calendar year.
"Our operational performance continues to progress," chief executive Jakob Stausholm said.
"While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business."
Rio Tinto also greenlit the $US11.6 billion ($A17.2 billion) development of a mammoth iron ore deposit in the West African country of Guinea.
BHP fell 1.4 per cent to $43.08, while Fortescue grew 0.5 per cent to $22.59 and goldminer Northern Star added 0.6 per cent to $13.96.
Adriatic Metals dropped 10 per cent to a four-month low of $3.23 after an unfavourable court decision in Bosnia and Herzegovina that could delay progress of Adriatic's Vares silver mine there.
The Big Four retail banks were mixed, with NAB up 0.4 per cent to $37.38 and Westpac advancing 0.3 per cent to $28.18, while ANZ and CBA both dipped 0.2 per cent, to $29.78 and $132.44, respectively.
Droneshield plummeted 22.3 per cent to $2.02 following its red-hot run, with DRO shares rising nearly sixfold this year.
In response to an ASX price query, the drone-defence company said the only explanation it had for the plunge was a media article about short-sellers circling the firm.
Electro Optical Systems gained 6.2 per cent to $1.72 after the defence manufacturer reported a 92 per cent jump in half-year revenue, to $142.6 million.
The Australian dollar was buying 67.42 US cents, from 67.73 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday down 18.3 points, or 0.23 per cent, at 7,999.3
* The broader All Ordinaries dropped 19.1 points, or 0.23 per cent, to 8,243.3
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.42 US cents, from 67.73 US cents at Monday's ASX close
* 106.84 Japanese yen, from 106.99 Japanese yen
* 61.90 euro cents, from 62.16 euro cents
* 52.01 British pence, from 52.19 pence
* 111.28 NZ cents, from 111.06 NZ cents.
