The S&P/ASX200 fell 73.3 points on Friday, down 0.8 per cent to 9,115.2, as the broader All Ordinaries lost 68.2 points, or 0.73 per cent, to 9,313.2.
The top-200 was down 1.6 per cent for the week, led by a sharp dip in financials stocks.Â
Housing market worries impacted bank stocks, while retreats in copper and gold prices weighed on miners.
Earnings season has delivered a mixed bag of beats and misses and with valuations near all-time highs, investors have set high bars to warrant further buying at these prices.
"The ASX has been caught between a strong run to fresh record highs last week and a more complicated reality check as the numbers started landing," Vantage senior market analyst Hebe Chen told AAP.
"The RBA kept another rate hike on the table, while results from the major banks exposed softer mortgage demand and an increasingly unforgiving market for forward guidance, giving investors more reasons to take some chips off the table."
A more than three per cent slump in BHP to $61.35 loomed large over the exchange, as copper prices ground lower for a fourth straight session.
BHP will hand down its full-year results on Tuesday, along with CSL, Cochlear and Pro Medicus.
The energy sector dipped on Friday but gained 2.8 per cent for the week on the back of strong oil prices, as hopes for a deal to reopen the Strait of Hormuz evaporated.
Officials have claimed the US could maintain its naval blockade of Iran indefinitely, signalling a pivot from military pressure to economic isolation.
Utilities, health care and IT stocks were the only other segments to improve over the week, as each benefited from dip-buying, defensive inflows and company-level earnings beats.
Consumer-facing stocks came under pressure as macroeconomic worries weighed on spending expectations, but both staples and cyclicals have held on to most of their gains since May.
JB Hi-Fi, Temple & Webster, Breville, Super Retail and Zip Co will share their financial scorecards next week, offering more clues about how consumer confidence is tracking.
Looking to the broader economy, other names reporting include BHP, BlueScope Steel, GPT Group, Lendlease, Goodman Group, Santos, Charter Hall, Northern Star, Whitehaven Coal, Vicinity Centres, Dexus, Inghams and Telix Pharmaceuticals.
Investors will also be watching Wednesday's wage price index data and Thursday's employment figures.
The Australian dollar is buying 70.68 US cents, up from 70.45 US cents, as a softening US interest rate outlook keeps the greenback in check against most major currencies.
ON THE ASX:
* The S&P/ASX200 lost 73.3 points, or 0.8 per cent, to 9,115.2
* The broader All Ordinaries fell 68.2 points, or 0.73 per cent, to 68.2
One Australian dollar trades for:
* 70.68 US cents, from 70.49 US cents at 5pm AEST on Thursday
* 112.56 Japanese yen, from 112.35 Japanese yen
* 61.23 euro cents, from 61.20 euro cents
* 52.34 British pence, from 52.28 pence
* 120.40 NZ cents, from 120.88 NZ cents
9°C