At noon AEST on Tuesday, the benchmark S&P/ASX200 was down 15.6 points, or 0.19 per cent, to 8,002.0, while the broader All Ordinaries had slipped 12.7 points, or 0.15 per cent, to 8,249.7.
The small losses still meant the ASX200 was tracking for its second-highest close ever, after a three-day winning streak propelled it above 8,000 for the first time on Monday.
Overnight dovish comments by Fed chairman Jerome Powell about inflation being tamed led to increased bets the US central bank would cut interest rates three times in 2024, with the market's implied pricing for that event now at more than 60 per cent.
Domestically the ANZ-Roy Morgan weekly consumer confidence survey showed no sign of improvement, hitting its second-lowest level since early December.
At midday four of the ASX's 11 sectors were lower, six were higher and consumer staples was flat.
Materials was the biggest mover, dropping one per cent on losses from BHP and Rio Tinto.
Rio had slipped 2.2 per cent to a four-month low of $117.26 after the mining giant forecast decreased copper and alumina production this calendar year.
"Our operational performance continues to progress," chief executive Jakob Stausholm said. "While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business."
BHP fell 1.7 per cent to $42.93, Fortescue had slipped 0.3 per cent to $22.41 and goldminer Northern Star was up 1.0 per cent to $14.015.
Three of the four big retails banks were higher, with NAB up 0.5 per cent, Westpac adding 0.3 per cent and ANZ edging 0.1 per cent higher. CBA had slipped 0.4 per cent.
Droneshield had slid 16.2 per cent to $2.18 after a recent red-hot run. Its shares are up 472 per cent year-to-date.
Electro Optical Systems had gained 5.6 per cent to $1.71 after the defence manufacturer reported a 92 per cent jump in half-year revenue, to $142.6 million.
The Australian dollar was buying 67.44 US cents, from 67.73 US cents at Friday's ASX close.
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