The S&P/ASX200 fell 1.2 points on Friday, down 0.01 per cent, to 8,731.2, as the broader All Ordinaries gained 12 points, or 0.13 per cent, to 8,922.9.
The top-200 shed 0.11 per cent since Monday, in a fifth week of losses of the past six, making early August's 9,296.7 record high seem like a distant memory.
"Australian shares are flat this week and are four per cent lower over the month and have had no growth since the beginning of the year, which reflects a more aggressive Reserve Bank (relative to the Fed) and a slowing economy," AMP deputy chief economist Diana Mousina said.
Local mining stocks put up a fight in the last session before the weekend, with raw materials stocks up 1.4 per cent as copper and precious metals prices bounced from their recent sell-off.
The gold sub-index charged almost four per cent as the precious metal firmed to $US4,393 ($A6,196) an ounce, while Rio Tinto and BHP improved as copper futures rebounded to $US6.62 per pound.
Fortescue traded roughly flat for the week, as iron ore futures clawed back some of their early week losses to trade $US97.35 a tonne.
Banks and interest rate stocks dragged the indices lower after Reserve Bank governor Michele Bullock outlined a hard road ahead in the central bank's inflation battle, as ongoing oil supply disruptions pressured price growth.
Markets have priced a more than four-in-five chance the RBA board will hike the official cash rate to 4.6 per cent at its September 29 meeting, following this week's funding rate increases by the US Federal Reserve and Bank of Japan.
"Inflation is too high," Ms Bullock said.
"We are focused on getting it back down and making sure that it does not become embedded into price and wage-setting decisions."
In company news, data centre player NextDC rallied almost three per cent after settling its $1.1 billion convertible note offering, which will be listed via the Vienna Stock Exchange.
UK retail group Frasers has extended its takeover bid to buy out the remaining shares in Accent Group — which owns Hype DC and Platypus — in a deal that valued Accent at roughly $391 million.
The Australian dollar is buying 71.27 US cents, up slightly from 71.17 US cents on Thursday at 5pm.
ON THE ASX:
* The S&P/ASX200 fell 1.2 points, or 0.01 per cent, to 8,731.2
* The broader All Ordinaries rose 12 points, or 0.13 per cent, to 8,922.9
One Australian dollar trades for:
* 71.27 US cents, from 71.17 US cents at 5pm AEST on Thursday
* 111.86 Japanese yen, from 110.76 Japanese yen
* 62.07 euro cents, from 61.99 euro cents
* 53.31 British pence, from 53.12 pence
* 124.51 NZ cents, from 123.98 NZ cents
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