The S&P/ASX200 fell 8 points after five consecutive gains. Energy stocks rose on Strait of Hormuz tensions. BHP gained 4.5% on copper demand. Gold hit seven-week highs. The RBA meets Tuesday.
Australia's benchmark equity index slipped on Friday, ending a five-day winning streak that had pushed it to successive all-time highs.
The S&P/ASX200 fell 8 points, or 0.09%, to 9,263.6. The broader All Ordinaries lost 6.9 points, or 0.07%, to 9,445.1.
Energy stocks rose as oil prices gained. Iran and Oman outlined a plan to reopen the Strait of Hormuz while barring US and Israeli ships, dashing hopes of an imminent peace deal, Betashares chief economist David Bassanese said.
"Iran feels it 'holds the cards' given it can still effectively block ship traffic through the Strait of Hormuz (and to a degree the Red Sea) and all of America's bombing can't seem to shake the regime," Bassanese said. "A deal between Iran and Oman would block US and Israeli ships crossing the Strait – this must surely be an ambit claim as the US could never agree to that."
Raw-materials stocks extended their rally. Gold miners and lithium producers gained, with rare earths companies also rising on lower inflation expectations and upswings in underlying commodity prices.
Gold traded at seven-week highs of $US4,297 ($A6,109) an ounce. Easing global inflation fears softened the US interest-rate outlook, helping non-yielding assets, traders said.
Shares in Australia's largest company, BHP Group, gained 4.5% since Monday to trade at $62.97. The company's heightened copper exposure has paid off as AI-related demand for the base metal soars, the company said in prior filings.
Financials traded near record highs, clocking gains in eight of the past nine weeks as the major banks recovered from a second-quarter slump. Consumer-facing stocks also improved in recent weeks, buoyed by a softer-than-expected June inflation print and resilient household spending.
Tuesday's Reserve Bank of Australia meeting is the next catalyst for the market. "The RBA will likely revise down their inflation forecast next week and hold rates unchanged," AMP economist My Bui said. The central bank would retain a hawkish bias, and AMP expected another rate hike in November if core inflation remained sticky, Bui added.
In company news, Coles confirmed it will offshore hundreds of back office jobs in a multi-year deal with Accenture.
Earnings season continued to deliver mixed results. James Hardie shares soared on a strong first-quarter update. Nick Scali fell on a dim retail and supply chain outlook. ResMed tumbled 7% after flagging "very modest" price increases.
The Australian dollar bought 70.33 US cents, down from 70.42 US cents on Thursday at 5pm.
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