The S&P/ASX 200 index shed 0.2 per cent or 13.7 points to end at 6,681.60.[SYDNEY] Energy stocks pulled Australian shares lower on Wednesday, with investors cautious ahead of the US Federal Reserve's rate decision and key domestic employment data.
"Higher unemployment rate or much slower jobs growth - that could be the sort of thing that makes economists talk about the possibility for a rate cut in October," said Steven Daghlian, market analyst at CommSec.Slowing consumer spending has been one of the biggest worries for the Australian central bank recently, which it hopes to address through additional easing if needed, while aiming at a inflation target of 2 per cent to 3 per cent.
The Australian energy index declined 1.8 per cent at close, as its oil-related constituents were hit by a fall in oil prices, after Saudi Arabia assured that the Kingdom would restore lost oil production by the end of the month.