Looking ahead, traders are closely monitoring the Reserve Bank of Australia's stance on interest rates, especially in light of recent global trends.

Currently, the Australian dollar is trading at approximately 68.16 US cents, reflecting a slight decrease from previous levels.

As of midday Tuesday, the S&P/ASX200 index fell by 26 points, or 0.32%, settling at 8,127.3, while the All Ordinaries dropped 19.5 points, or 0.23%, to 8,364.7.

The financial sector also faced challenges, declining by 1.6%, with all four major banks reporting losses.

This decline follows a drop from record highs, with the S&P/ASX200 index down 65.8 points, or 0.8%, at 8,144.0 earlier on Monday.

Iron ore prices fell by 3.4% and aluminium prices decreased by 2.2%, further impacting mining stocks negatively.

Despite the overall decline, advancing stocks outnumbered declining ones on the Sydney Stock Exchange, with 593 rising against 482 falling.

Notably, Whitehaven Coal Ltd and Mineral Resources Ltd performed well, increasing by 6.63% and 6.53%, respectively.

In the technology sector, Afterpay owner Block saw an increase of more than 2%, while other companies like Appen and Xero experienced slight declines.

The downturn in the Australian share market is attributed to weakness in mining and energy stocks, which contributed to the overall market decline.

Among the big four banks, ANZ, Westpac, and National Australia Bank showed slight gains, while Commonwealth Bank remained flat.

On the commodities front, crude oil prices rose by $1.10, or 1.5%, ending at $71.19 a barrel amid ongoing supply concerns.