PERTH: The Australian stocks has pulled further back from its pursuit of the key 6,000 threshold, as the benefits of improving commodity prices were more than offset by strong gains in the Australian dollar.
At 12.05pm (AEST), the benchmark S&P/ASX200 index was 69.7 points, or 1.17 per cent, lower at 5,878.8, while the broader All Ordinaries index was down 65.6 points, or 1.11 per cent, at 5,855.9.
The Australian dollar jumped past US80c in overnight trade on the back of comments from Reserve Bank of Australia governor Glenn Stevens and soft US data.
Gains in the currency over the last 24 hours have also been aided by commodity prices, with iron ore reaching a near two-month high overnight after enjoying its ninth straight positive trading session.
The higher Australia dollar will squeeze stocks on the local market with exposure in the US, while the financial sector was weighing on the bourse at noon, with all four of the big banks deep in the red.
Financials pushed 1.34 per cent lower collectively.
ANZ lost 1.21 per cent to $34.98, while Commonwealth Bank retreated 0.98 per cent to $91.67.
National Australia Bank retreated 1.6 per cent to $37.765 while Westpac gave up 1.43 per cent to $37.84.
