At noon AEDT on Friday, the benchmark S&P/ASX200 index was down 38 points, or 0.5 per cent, to 7,780.
The broader All Ordinaries was down 38 points, or 0.5 per cent, to 8,034.
Most of the ASX's 11 sectors were lower besides the energy sector, which was up 0.45 per cent, still benefiting from the boost to oil prices. Brent crude was at a six-month high of $US91 a barrel.
Major petroleum producers saw significant gains. Woodside was up 0.3 per cent, Santos rose 1.5 per cent and both Viva and Ampol, 2.5 per cent. But Beach Energy was down 0.7 per cent.
Real estate was the only other sector in the green, up by 0.3 per cent, likely buoyed by the US Federal Reserve's promise to cut interest rates later this year.
The materials sector was down 0.7 per cent. Industry leader BHP fell by 0.8 per cent, Rio Tinto by 0.7 per cent and Fortescue, 0.5 per cent.
However, gold miners have continued to do well after the price of gold hit a record high of $2,295 an ounce on Wednesday night.
Northern Star was down by 0.6 per cent, Newmont was up 1 per cent and Evolution Mining rose 1.2 per cent.
The Big Four banks were mostly down, except for Westpac, which remained flat. ANZ was lower by 0.2 per cent, NAB fell 0.4 per cent and CBA, 0.65 per cent.
The financial sector as a whole was down 0.5 per cent.
In small caps, Vitura Health rose three per cent to 17 cents after announcing its joint venture Cortexa would begin manufacturing MDMA for clinical use, making it the first Australian company to produce the drug.
The Australian dollar has remained flat, from 65.90 US cents at Thursday's ASX close.