Australian shares fell 0.2 percent in volatile trade on Tuesday, as investors awaited the outcome of the US Federal Reserve's monetary meeting and turned tentative before an options expiry date. "On Thursday we have the index options expiry, a big expiry as it's the end of the quarter. I think that's why you're seeing a tentative market after the last few days," said Bell Potter Securities private client advisor Stuart Smith in Brisbane.
The S&P/ASX 200 index lost 11.5 points to 4,814.4, according to the latest data. The benchmark rose 0.7 percent on Monday. New Zealand's benchmark NZX 50 index added 0.3 percent or 14.5 points to 4,462.1. Commonwealth Bank of Australia bounced back and ended nearly flat, adding two cents. The other three smaller peers all came off their lows, with National Australia Bank Ltd sliding 0.6 percent.