The Australian share market drifted lower today in subdued trading conditions as investors and traders took a breather after a wild week. Losses were limited by bargain hunting and technical support at the low point established in the last fortnight. Globally, markets are on hold ahead of the non-farm payrolls data to be released tonight in the US, analysts said.

In a note to clients at the market closing, Michael McCarthy, chief strategist at CMC Markets, said "resource stocks remained under pressure despite a bounce in metals prices that followed better than expected readings of non-manufacturing business conditions in China.

The unprecedented deal by Rio Tinto (ASX: RIO) with five aboriginal groups to mine extensively at the Pilbara region in Western Australia, it did not make a dent in the entire market trading. RIO opened higher at 80.10, stocks stood at 79.76 by closing.

Mr McCarthy said unusually, the two sectors hit hardest in Australia today were the defensive consumer staples and the growth exposed energy stocks, suggesting selling today related to investors' current exposures rather than a particular investment theme.

"Telstra shares rallied, and combined with support for the banking sector, indicates dividend yields remain a key consideration for bargain hunters. Fosters shares were among the best performing on the market as reports of a joint bid from Mexico's Modelo Group and Canada's Molson Coors drove the local brewer's share price solidly higher," he noted.

IG Markets strategist Ben Potter in an interview with IBtimes-Australia, this trend will continue until next week as no surpring economic data is expected in the domestic as well as in the foreign markets.