News: XGD Banks, commodity stocks weigh on Aussie shares; investors eye RBA's next move

	  Gold stocks down 1.9%, Miners drop 1%, financials ease 

0.6%

	  Incitec Pivot down 7.8% - top loser on ASX200 

	  Wage price index rose 0.8% in March quarter 

(Updates to close)

Australian shares declined on Wednesday, weighed by financials and commodity stocks, while investors continued to ponder over minutes from the Reserve Bank of Australia (RBA) May meeting, which signalled the need for more interest rate hikes.

The S&P/ASX 200 index (xjo) fell as much as 0.5% to finish at 7,199.20, hitting a near two-week low. The benchmark settled 0.5% lower on Tuesday.

Investors await the RBA's next move after minutes from the its policy meeting, which were released on Tuesday, signalled further rate increases may be required due to persistently high inflation.

Meanwhile, data from the Australian Bureau of Statistics showed that the wage price index rose 0.8% in the March quarter, offering temporary solace for policymakers who worry a price-wage spiral may lead to more rate hikes.

"There is still some wage price pressure there, but it is not out of control by any means. The reason for weakness in the local bourse is a follow-on from RBA minutes, which is basically preparing the market for higher rates that may be coming in the not too distant future," said Tim Waterer, analyst at Kohle Capital Markets.

All eyes are also on the ongoing U.S. debt ceiling talks while the country's retail sales data for April pointed to softer consumer spending.

In Sydney, the heavyweight financials sub-index .AXFJ dropped 0.6%, with three of the so-called 'big four' banks declining between 0.5% and 1%.

Among individual stocks, Incitec Pivot Ltd (IPL) fell 7.8% and was the top decliner on the benchmark, after reporting a drop in half-yearly profit.

Tech stocks .AXIJ closed 0.9% higher, with Life360 Inc (360) up 5.7%.

Gold stocks .AXGD dropped 1.9% as bullion prices slipped. Newcrest Mining Ltd (NCM) and Northern Star Resources Ltd (NST) fell 2.1% and 1.1%, respectively.

Miners .AXMM ended 1% lower as iron ore prices pulled back on weak China economic data. BHP Group Ltd (BHP) and Rio Tinto Ltd (RIO) both fell.

In New Zealand, the benchmark S&P/NZX 50 index (nz50) settled marginally higher, to close at 11,951.6.