The week of the Reserve Bank meeting has begun with the ASX lowering, while interest rate talks in the US have pushed the Australian dollar below 70 US cents.
The market had lost 0.23 per cent on Monday before the first meeting of the Reserve Bank of the year was held on Tuesday.
The US Federal Reserve indicated last week it could raise rates in early March to slow inflation.
In response the greenback has risen and the Australian dollar depreciated.
On the ASX, the major stock categories Financial and Materials were each down one percent, but the rest of the market was mostly higher.
Information technology was the best-performing category after Wall Street ended the week higher.
US payments giant Block, which recently bought Afterpay, is having its best day on the ASX since joining this month.
The block, which trades under its previous name Square, rose six percent to $159.04 at 1,200 AEDT.
Property and consumer discretionary stocks were next best. Each category was a little over one percent.
The benchmark S&P/ASX200 index was down 16.5 points, or 0.23 per cent, at 6971.6.
The All Ordinaries Index was down 3.3 points, or 0.04 per cent, at 7263.
The Reserve Bank could have a major influence on the ASX this week.
Investors will be eager to predict interest rates for the bank, considering the December quarter inflation (3.5 per cent p.a.) is higher than the market expectation.
Governor Philip Lowe will discuss the decisions in detail when he speaks on Wednesday.
The bank will also give details of its monetary policy on Friday.
In stock news and moves, shares of glove maker Ansel fell sharply after problems for its factories and one supplier.
Ansel has closed a factory in Malaysia for at least a week to prevent workers from contracting the coronavirus. Infections were higher in other Ansel factories.
Meanwhile, the company has been barred from importing a glove supplier into the US due to concerns over forced labor.
Ansel closed 16 per cent lower at $26.16.
Commonwealth Bank disclosed that its first-half insurance operations would cover an $85 million loss from claims in October.
Storms and hailstorms occurred in parts of Australia, including the East Coast, South Australia and Tasmania.
The bank is scheduled to publish first half earnings on February 9.
The bank closed at $ 94.49, down one per cent.
ANZ was the worst performer of the big four and fell two percent to $26.91.
The minor IGO produced first-half earnings that met but did not exceed investor expectations.
Investors will receive an explicit interim payment of five cents per share in full, similar to the previous interim dividend.
The IGO closed at $11.66, down one per cent.
Most of the mining giants were also down. BHP fell two per cent to $45.85. The Rio Tinto closed at $111.49, down nearly two per cent.
Fortescue Metals managed to move against the trend and rose almost half a percent to $19.56.
The Australian dollar was buying at 69.95 US cents at 1,200 AEDT, down from Friday’s close of 70.37 US cents.