The Australian sharemarket touched a two-week low on Wednesday, extending a wave of profit-taking that kicked off in the previous session as traders await key US inflation data.

The S&P/ASX 200 fell 39.4 points, or 0.5 per cent at 8355.6 points. Investors sold off tech stocks for a second day, with the sector closing down 1.4 per cent, adding to a 4 per cent slump on Tuesday.

WiseTech fell 2.4 per cent to $121.79 and Xero was 1.7 per cent lower at $168.62.

The moves followed a weak session on Wall Street ahead of the US November consumer price index report due early on Thursday (AEDT), which is expected to influence the US Federal Reserve’s interest rate decision later this week.

ANZ economist Adam Boyton said despite bond traders pricing an 85 per cent chance of a 25 basis point cut from the Fed, markets were still wary of the CPI figures upsetting those changes.

“Before entering blackout last weekend, [Fed] speakers did emphasise that the [central bank] is approaching the time where it will be appropriate to slow the pace of rate cuts,” he said. They also “noted that incoming data will be important in formulating the rate discussion at the December meeting”.

Meanwhile, the Australian dollar steadied below US64¢, after slipping almost 1 per cent against the greenback overnight on Tuesday as traders redoubled hopes that an interest rate cut from the Reserve Bank was closer than previously expected.

Real estate stocks were the only industry group to climb on the ASX, led by sector heavyweight Goodman Group, which rose 1.7 per cent to $37.61 after Citi upgraded the shares to buy.

Stocks on the move

Elsewhere on the ASX, Eagers Automotive jumped 5.3 per cent to $12.11 following a separate note from Barrenjoey, which upgraded the stock to an overweight rating. Domino’s Pizza slipped 2.3 per cent to $30.52 after Citi cut its rating to neutral.

South32 was 4.4 per cent lower at $3.52 after revealing late on Tuesday that escalating civil unrest in Mozambique has slowed transport to and from the company’s operations, threatening its production guidance.

A block of Cettire shares valued at about $16 million has changed hands at $1.10 a share, with fingers pointing at major shareholder Cat Rock. Shares in the online luxury retailer were down 4.1 per cent to $1.18.

Paradigm Biopharmaceuticals dropped 13.6 per cent to 44.5¢ after the shares resumed trading following a $16 million capital raise on Tuesday.

Vulcan Energy Resources shares remain halted as it seeks a further $164 million in funding. The shares last traded at $6.64 and are expected to restart trading before Friday.

And collapsed airline Regional Express allegedly misled the market for more than a year about its profitability before it fell into administration in July, according to new allegations brought forward by the securities watchdog. The shares were suspended in July and last traded at 56¢.