The local share market lost ground after slightly hawkish comments by Reserve Bank governor Michele Bullock, while the local currency climbed to an eight-month high.
The benchmark S&P/ASX200 index on Thursday dropped 27.8 points, or 0.32 per cent, to 8,709.4, while the broader All Ordinaries fell 22 points, or 0.24 per cent, to 8,979.4.
The Australian dollar moved above 66 US cents for the first time since November 8, trading for 66.15 US cents, from 65.65 US cents at 5pm on Wednesday.