Mining Stocks Drag ASX Down Despite US Tech Rally

The Australian sharemarket declined despite a strong lead from Wall Street, dragged down by mining and energy stocks. The ASX 200 fell by 14.20 points or 0.16 per cent to 9005.90, while the All Ordinaries index eked out a tiny loss of 2.30 points or 0.03 per cent to 9196.00.

The Australian dollar rose against the US greenback, trading at US 72.06 cents due to increased expectations of an interest rate hike in Australia. AMP chief economist Shane Oliver warned that the Reserve Bank may be forced to lift rates again in September, citing strong GDP growth as evidence.

Mining giant BHP slumped by 2.40 per cent to $62.25, while Rio Tinto fell 0.68 per cent to $175.90. Fortescue bucked the trend with a gain of 1.59 per cent to $17.22.