Australian shares fell on Wednesday, dragged by heavyweight miners and energy stocks amid a drop in commodity prices, while New Zealand shares were flat ahead of the central bank’s policy decision due later in the day.

The S&P/ASX 200 index fell 0.5% to 7,789.30 by 0040 GMT.

The benchmark closed 0.9% higher on Tuesday.

Globally, market participants digested the Federal Reserve Chair Jerome Powell’s testimony before Congress, hoping for clarity on the most influential central bank’s monetary easing trajectory.

Powell said that the US inflation has been improving in recent months but was still above the 2% target.

US inflation data is due this week, including Thursday’s consumer price index and the producer price index reading on Friday.

Back in Australia, a survey showed that consumer sentiment dipped in July on fears of inflation persisting and the possibility of further rate hikes.

The financials sub-index lost 0.4% with the “Big Four” banks falling between 0.1% and 0.8%.

Bellwether mining stocks shed 0.9%, hitting their lowest level since July 3.

The sub-index tracked global iron ore prices, which fell on subdued demand from top buyer China.

Mining giant BHP Group fell 0.9% while Rio Tinto traded largely flat.

Australia shares end higher on broad-based rally; Powell’s speech in focus

Energy stocks also declined 0.5%, hurt by falling oil prices. Woodside Energy dropped 0.5% while smaller peer Santos lost 0.6%.

The healthcare sector fell 0.5% and information technology firms lost 0.7%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index was largely unchanged at 11,829.38 ahead of its central bank’s crucial cash rate decision.

The Reserve Bank of New Zealand is expected to keep its rate unchanged, a Reuters’ poll showed.