The benchmark S&P/ASX200 index began trading Tuesday with a 0.4 per cent drop, but had nearly recouped those losses in the second hour of trading.
At noon AEST, it was down 8.4 points, or 0.1 per cent , at 8,101.5.
That is 47.2 points from its all-time intraday high from August 1 and just 13.2 points from its record closing high, set the same day.
The broader All Ordinaries had dropped 7.6 points, or 0.1 per cent, at 8,323.2.
In the US, Wall Street was closed overnight for a public holiday.
Capital.com analyst Kyle Rodda called it the "calm before the storm," with Friday's non-farm payrolls report set to be the most consequential US jobs report in several years.
Eight of the ASX's 11 sectors were lower at midday, with financials, tech and telecommunications slightly higher.
Consumer staples was the biggest mover, dropping 1.9 per cent as Woolworths traded ex-dividend.
The supermarket giant was down 3.4 per cent to $34.62, while Coles had fallen 2.2 per cent to $18.52.
All of the big four banks were at least slightly higher, with CBA up 0.5 per cent, Westpac adding 0.2 per cent and ANZ and NAB up by 0.1 per cent.
In the heavyweight mining sector, BHP was down 0.2 per cent and Fortescue had dipped 0.3 per cent, while Rio Tinto had added 0.3 per cent.
Goldminers were mostly higher as the precious metal changed hands at $US2,493 an ounce, with Evolution up 1.5 per cent and Bellevue Gold climbing 3.9 per cent, although Northern Star had dropped 0.9 per cent.
The Australian dollar was buying 67.76 US cents, from 67.75 US cents at Monday's ASX close.
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