At midday AEDT on Tuesday, the benchmark S&P/ASX200 index was down 51.1 points, or 0.6 per cent, to 8,486.0, while the broader All Ordinaries was down 48.1 points, or 0.55 per cent, to 8,762.8.
Capital.com analyst Kyle Rodda said that the eyes of the world would temporarily be on Australia on Tuesday as the Reserve Bank hands down its latest decision on interest rates at 2.30pm.
The futures market on Monday was giving 90 per cent implied odds that Australia's central bank would cut rates for the first time since November 2020.
"The RBA is highly likely to announce a rate cut this afternoon - a decision that will no doubt be welcomed by most Australians," said VanEck's head of investments and capital markets, Russel Chesler.
If the RBA surprises and keeps rates on hold, expect the ASX200 to dive back towards support at 8,440/8,460 and the Australian dollar to rip higher towards resistance at 64.40 to 64.60 US cents, said IG market analyst Tony Sycamore.
Overnight there was little news flow out of the United States, where markets were closed for a public holiday.
Seven of the ASX's 11 sectors were lower at midday, with consumer staples, health care and tech higher and utilities flat.
Energy was the biggest mover, dropping 1.7 per cent as Woodside fell 2.2 per cent and Whitehaven Coal retreated 3.5 per cent.
In the heavyweight mining sector, BHP was up 0.8 per cent to $41.12 as the Big Australian announced its lowest interim dividend in eight years.
Fortescue was up 0.3 per cent, Rio Tinto had gained 0.4 per cent and South32 had dropped 1.0 per cent.
Goldminers lower as the precious metal traded at $US2,896 an ounce, with Northern Star falling 1.7 per cent and Evolution dipping 0.5 per cent.
All of the big four banks were lower, with Westpac dropping 2.2 per cent, CBA and NAB both retreating 1.2 per cent and ANZ dipping 0.6 per cent.
Hub24 had surged 7.6 per cent to $87.48 as the wealth management platform hiked its dividend by 30 per cent after turning a $42.6 million underlying profit in the first half, up 40 per cent from a year ago.
"Today's strong Hub24 (HUB) result shows the company continues to consolidate wealth platform market share, in what remains a significant opportunity," said Damon Callaghan, investments partner at ECP Asset Management.
"The highlight, however, was the strong profit margin improvement across the company."
HMC Capital had grown 12.8 per cent to $11.17 after the alternative asset manager announced pre-tax operating earnings of $202.2 million, up 240 per cent from a year ago.
Judo Capital Holdings was also up 10 per cent after delivering its first-half result, while Challenger Limited had fallen a similar amount following its its earnings release.
The Australian dollar was buying 63.42 US cents, from 63.60 US cents at 5pm on Monday.
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