The S&P/ASX 200 index lost 0.2% to 7,318 by 0035 GMT. The benchmark ended 0.4% higher on Monday. Market participants are focused on the Reserve Bank of Australia's (RBA) monetary policy meeting, due at 0430 GMT, where it is likely to keep its interest rates unchanged for the second consecutive time at 3.6%, according to a Reuters poll.
Although price pressures had moderated in the first quarter in Australia, core inflation still remained above the RBA's mandate of 2-3%.
The financial sub-index led losses, dropping about 0.4%, with the country's largest four banks trading lower between 0.1% and 0.7%.
Energy stocks followed suit, falling about 0.8%, after Brent crude prices took a hit, with index heavyweights Santos and Woodside Energy easing 0.6% and 0.5%, respectively.
On the bright side, the gold index added 0.8% to the benchmark, with sector majors Newcrest Mining and Northern Star Resources rising 1% and 0.7%, respectively.
The healthcare and the tech indexes rose marginally about 0.1% each.
Woolworths Group was down 0.3% after the Sydney-based grocer posted an 8% rise in quarterly sales, although it said it continues to see "frustratingly" higher inflation, with customers being more cautious on their expenditures. Qantas Airways named finance chief Vanessa Hudson as its first-ever female CEO. Shares of the carrier were down 2.5%. Meanwhile, New Zealand's benchmark S&P/NZX 50 index fell 0.1% to 11,993.9.
(Reporting by Archishma Iyer in Bengaluru; Editing by Rashmi
Aich)
U.S. earnings diary Wall Street Week Ahead Global Economy Week Ahead ................................................................ For latest top breaking news across all markets ))
