The S&P/ASX200 edged 10.2 points lower, or down 0.12 per cent, to 8,833.5 in Thursday morning trade, while the broader All Ordinaries lost 7.8 points, or 0.09 per cent, to 9,103.3.
The local bourse hit new all-time highs on Wednesday on expectations of cheaper borrowing costs and commodity price strength supporting the materials sector.
"The steadiness in precious metals suggests investors remain risk-averse, while the calm overall tone points to traders avoiding extremes despite ongoing macro uncertainty," Moomoo market strategist Paco Chow said.
"If investor bullishness over corporate earnings and rates cuts continues, we could see Australia become the ultimate 'value play' in the coming weeks."
Six of 11 local sectors were trading lower by midday with industrials, financials and energy stocks leading losses but none down more than 0.3 per cent.
The consumer staples and discretionary sectors, along with real estate and IT stocks were at the other end of the scale, each up between 0.3 per cent and 0.4 per cent.
Three of the big four banks were trading lower with CBA having sunk 0.3 per cent to $178.63, while ANZ eked a 0.4 per cent lift to $30.98.
AMP overcame an early dip to lift more than one per cent after posting a nearly five per cent drop in interim net profit, as chief executive Alexis George touted strong cashflow in its wealth business and decreasing costs at an earnings briefing.
Australia's materials sector eased by less than 0.2 per cent, as large cap iron ore miners BHP, Fortescue and Rio Tinto faded from recent strength, but gold miners continued to rally with Westgold Resources a top performer and up more than six per cent.
Gold futures continue to edge higher to trade at $US3,445 ($A5,292) an ounce, less than two per cent from all-time highs.
Energy stocks fell 0.4 per cent by lunchtime, tracking with a dip in oil prices overnight after the White House flagged progress on potential talks with Russia over an end to the Ukraine war.
Exchange operator ASX Limited has sunk more than seven per cent after tagging TPG Telecom in an announcement relating to TPG Capital, a private equity firm not listed on the Australian exchange. The bungle temporarily wiped more than $400 million from the telco's market cap.
Investment giant UBS has reiterated its "sell" rating on the beleaguered market operator, which is also under pressure from regulators over the long-delayed replacement of its settlement system.
The Australian dollar is buying 65.11 US cents, up from 64.88 US cents at Wednesday's ASX close.
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