Australian shares drop to two-week low as traders brace for economic data

Australian shares fell to a two-week low on Wednesday, weighed down by heavyweight financials and technology stocks, as investors kept to the sidelines ahead of key economic data for cues on the Reserve Bank of Australia's monetary policy path.

The S&P/ASX 200 index XJO was down 0.5% at 8,854.20 points, as of 0024 GMT. The benchmark ended 0.3% lower on Tuesday.

The benchmark index was on track to log its fourth consecutive session of losses, should the current momentum persist. The index has lost 1.3% so far this month, as traders locked in profits following its strongest August performance since 2009.

On the economic front, traders await release of Australia's second-quarter GDP data, due later in the day.

Investors would be looking at this data as they are "wary of weak growth and the potential need for more aggressive RBA cuts in the future," said Kyle Rodda, a senior financial market analyst at Capital.Com.

Market swaps are currently pricing over an 80% probability that the RBA will hold rates steady later this month. (0#AUDIRPR)

Back on the bourse, rate-sensitive financials XFJ dropped nearly 1%, hitting their lowest level since August 20.

The "Big Four" lenders shed between 0.6% and 1.4%.

Australian technology stocks XXIJ slid as much as 2%, touching their lowest point since mid-July, in tandem with U.S. peers.

New Zealand-based accounting software giant Xero XRO fell more than 3% while WiseTech Global WTC lost 1.4%.

Energy stocks XEJ pared early gains to trade 0.2% lower, with Santos STO falling 0.4%.

Bucking the broader sombre trend, miners XXMM advanced 0.3% on the back of firmer iron ore and copper prices, putting them on track for their fourth consecutive session of gains.

Global miners BHP Group BHP and Rio Tinto RIO each gained 0.3%.

New Zealand's benchmark S&P/NZX 50 index NZ50G traded largely flat at 13,143.22 points, as of 0024 GMT.