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The Australian share market has lost around 1 per cent over the first half of the trading day, with most sectors sitting in the red.
By 12:22pm (AEST), the ASX 200 index was down 1 per cent at 5,668, while the broader All Ordinaries index had fallen 0.9 per cent to 5,719.
The declines amount to around $16 billion being wiped off the value of the share market in one morning.
The major banks gave back some of last week's strong gains, which were based on lower-than-expected extra capital requirements from the banking regulator — Westpac was down 1.7 per cent, ANZ and NAB 1.5 per cent and the Commonwealth 1 per cent.
The major miners were also in the red, with BHP down 0.5 per cent and Rio Tinto off around 1 per cent.
Telstra was one stock holding its ground on the market, up 0.1 per cent at $4.105 amid speculation in the Financial Review that it may sell-off future NBN compensation payments to raise cash now that could be returned to shareholders.
The persistently strong Australian dollar is likely to be one factor weighing on the market, especially export-exposed firms or those which earn much of their revenue overseas.
The local currency is still sitting above 79 US cents — at 79.17 — despite Reserve Bank attempts to talk it down.
However, some analysts are saying that the Australian dollar looks to be forming a top and may not pass through 80 US cents.
"In many ways, it is the FOMC [the US Federal Reserve's Open Market Committee] which has the power to determine whether or not the Aussie dollar is ready to breach and hold above 80 cents or whether it is time to turn tail and head lower once again," noted Greg McKenna, the chief market strategist at AxiTrader.
"Just as rates in Australia didn't need to go as low as they did in other nations so — as policy rates normalise globally — Australian rates are not under the same pressure to rise as they are elsewhere."
Topics: stockmarket, currency, futures, markets, australia