The S&P/ASX200 was down 0.32 per cent at 5864.5 at close on Friday while the All Ordinaries Index slipped 0.19 per cent to 6057.6.

CommSec analyst Steve Daghlian said weakness in the US market overnight related to uncertainty around future timelines for COVID-19 vaccines combined with disappointing housing and jobs data.

Locally, the big four banks weighed on the market. ANZ lost 1.44 per cent to $17.07, Commonwealth Bank dipped 0.97 per cent to $64.37, National Australia Bank inched 0.06 per cent lower to $17.29 and Westpac lost 1.01 per cent to $16.64.

AMP was among the worst performers, plunging 8.2 per cent to $1.40 but did not release any announcements. Abacus Property Group fell 4.3 per cent to $2.66 while CSR Ltd rose 4.82 per cent to $4.13.

Mining stocks helped offset the losses, despite the iron ore price softening this week. Rio Tinto put on 1.27 per cent to $100.57, BHP added 1.31 per cent to $37.80 and Fortescue lifted 0.99 per cent to $16.39.

Webjet and Flight Centre were up less than 1 per cent to $3.91 and $13.22 respectively after Queensland announced it would open its border to the ACT.

Bunnings owner Wesfarmers dropped 1.56 per cent to $44.08, Qantas closed 0.51 per cent higher at $3.98 and Telstra was up 0.35 per cent to $2.83.

The Aussie dollar was fetching 73.21 US cents, 56.44 British pence and 61.71 Euro cents in afternoon trade.