News: XFJ Australian shares edge lower on banks, tech drag; CPI in focus

	  Australian CPI data due on Wednesday 

	  Woodside hits near 1-month high 

	  Coles Group closed at highest level in two years  

(Updates to close)

Australian shares ended marginally lower on Tuesday as losses in bank and tech stocks outweighed gains in commodity-linked shares, while investors remained cautious ahead of the domestic inflation print.

The S&P/ASX 200 index (xjo) closed down 0.2% at 8,071.20 points.

Rate-sensitve financials .AXFJ were the biggest drag on the index, losing 0.9% with the "Big Four" banks down between 0.2% and 1%.

"The financial sector has slipped after spinning its wheels against resistance from its July record high of 8,176. Possibly, the lack of upside traction is a result of money leaking out of the big banks and into beaten-up mining stocks," said Tony Sycamore, a market analyst at IG Australia.

Technology stocks .AXIJ closed 1.3% lower tracking overnight losses on Wall Street, with Xero (XRO) closing 2.2% lower.

Mining stocks .AXMM rose 0.9% on the back of rising iron ore prices and upbeat earnings from BHP (BHP) , whose shares rose 1.3% on better-than-expected annual profit.

Energy stocks .AXEJ closed 2.3% higher, boosted by Woodside Energy (WDS) which gained 3.9% after its half-yearly profit beat estimates.

Investors also cautiously awaited the domestic consumer price index data due on Wednesday, which could provide further cues on the Reserve Bank of Australia's monetary policy stance.

Additionally, traders are on the watch for the U.S. inflation data due on Friday, which could cement a 25 basis point cut from the Federal Reserve next month.

"I think investors have universally priced-in for a September cut (from the Fed), so any major upside surprise could potentially disrupt this optimistic sentiment," said Glenn Yin, Head of Research and Analysis at AETOS Capital Group.

In corporate news, shares of grocer Coles (COL) closed 1.7% higher on better-than expected annual profit.

New Zealand's benchmark S&P/NZX 50 index (nz50) closed 1.1% lower at 12,451.1.