'Brutal' Australian share market in the red for 2023

"It's pretty brutal out there," Ausbiz TV anchor Nadine Blayney said on air.

The ASX200 tumbled to its lowest level since a January 3 selloff. It is now down one per cent since the start of the year, despite a 6.2 per cent rally in January.

The index was also trading below its 200-day moving average, a key technical level.

Corpay APAC currency strategist Peter Dragicevich said that while steps by the US financial authorities to deal with the crisis were as strong as could be reasonably expected, the market volatility was continuing, particularly in bank shares and the bond market.  

"We expect market gyrations to continue near-term as the economic and financial market effects from the most abrupt tightening cycle in decades continue to play out," he wrote.

Australian bond yields were down sharply as the market re-priced the increased odds that the Reserve Bank would pause its rate-hiking campaign next month. 

Every ASX sector was in the red at midday, with energy the biggest loser - down 3.4 per cent as Woodside fell 3.6 per cent.

The financial sector slid 2.5 per cent , with ANZ down 2.2 per cent, NAB losing 2.3 per cent, CBA dropping 1.5 per cent and Westpac down 1.6 per cent. Macquarie Bank fell 3.7 per cent.

Insurance companies IAG and QBE were both down more than four per cent each and Suncorp lost more than five per cent of its value.

The heavyweight mining sector was down 1.3 per cent, with BHP down 1.7 per cent and Rio and Fortescue both down 1.1 per cent each .

Goldminers were the one bright spot on the market, with Northern Star and Newcrest both up 3.8 per cent as the price of the safe haven metal rose above $US1,900 for the first time since early February.

Cryptocurrencies were also soaring, with Bitcoin up eight per cent to a three-week high of $US24,300 ($A36,000).

Meanwhile, the Australian dollar was buying 66.52 US cents, from 66.61 US cents at Monday's ASX close.