By midday AEST, the S&P/ASX200 was up 2 points, or 0.02 per cent, to 8281.6, as the broader All Ordinaries fell 7.7 points, or 0.09 per cent, to 8,512.5.
After a wild couple of months of trading due to US tariff threats, impositions and walk-backs, marker conditions were normalising, Capital.com market analyst Kyle Rodda said.
"Volatility has diminished, and while less exciting, price action resembles that of an otherwise healthy, well-functioning and bullish market," he said.
"The upside momentum at the start of the week has slowed down, spurring commentary about potential caution setting in again amongst market participants."
Much could still go wrong, with a lack of comprehensive trade deals and the United States' reciprocal tariff pause set to end on July 8.
The tariff reduction between the US and China announced this week will lapse on August 10.
Local sectors are mixed, with seven of 11 trading lower by noon.
Large cap miners were weighing on the bourse, with BHP, Rio and Fortescue all trading lower, tracking with a 0.7 per cent slip in iron ore futures to $101.25 per tonne.
The materials sector slipped 1.1 per cent and gold miners were sinking after the precious metal fell to a five-week low of $US3,888 ($A4,950).
Modest gains of 0.9 per cent for NAB and 0.6 per cent for CBA, ANZ and Westpac helped push financials 0.6 per cent higher.
Energy stocks look set to snap a seven-session winning streak, down 0.7 per cent as oil prices fell as expectations build for a US-Iran nuclear deal, which could ease sanctions on the gulf state.
Higher than expected US crude inventories also weighed on the price, helping push Brent futures more than two per cent lower to $US64.56.
Insurance Australia Group was the best top-200 performer, rallying 3.9 per cent to $8.75 after buying Royal Automotive Club of Western Australia's insurance arm.
Treasury Wines Estates slumped more than five per cent after announcing boss Tim Ford will make way for Lion chief executive Sam Fischer in October.
Australian unemployment held steady as expected in April at 4.1 per cent, but surprise employment growth of 89,000 shattered forecasts of 21,000 jobs.
While a 25-basis point cut is still overwhelmingly expected at the Reserve Bank's meeting on Tuesday, the jobs figures will give the central bank more to discuss.
"A surprisingly strong labour market, despite an otherwise weak economy, has been the one argument against lowering rates, with the RBA clearly achieving its employment mandate," Mr Rodda said.
The Australian dollar is buying 64.46 US cents, down from 64.74 US cents on Wednesday at 5pm.
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