The Australian sharemarket is falling for the first time in nine sessions with the All Ordinaries index (XAO) off by 0.3 pct or 15.5 pts to 4986.2. Almost all sectors are weaker with the defensive telecommunications sector the best performer at lunch.

Australia's largest telecommunications company, Telstra (TLS), is up 2.08 pct or 6 cents to $2.94 despite recording a 35 pct fall in its first half profit yesterday to just under $1.2 billion. TLS's dividend yield is sitting at just under 10 pct at the moment based on today's share price. It is also the first time in a number of years that TLS has not announced a profit downgrade following a profit result.

Australia's largest lender, Commonwealth Bank of Australia (CBA), has had a stellar week so far and has gained close to 5 pct since last Friday. Earlier in the week, CBA announced a first half profit (July to December 2010), of over $3.3 billion which was higher than expected.

The big four banks are all trading slightly lower at lunch, with National Australia Bank (NAB), off 0.81 pct or 21 cents to $25.73, both Westpac (WBC) and ANZ Banking Group (ANZ) off by between 0.25 pct and 0.5 pct and CBA trading largely flat.

Australia's largest gold producer, Newcrest Mining (NCM) posted its profit result at 8.42am (AEDT) and is off 0.85 pct or 32 cents to $37.38. NCM´s first half profit rose strongly to $437 million. NCM also announced the departure of its managing director, Ian Smith at the start of July.

Some Asian markets have started trading in their first session of the day with the China's Shanghai Composite index down 0.18 pct or 4.98 pts to 2814, Japan's market is closed for the National Foundation day public holiday today and the Hong Kong market will open shortly.

On the economic front, the Reserve Bank Governor, Glenn Stevens, testified before the House of Representatives Standing Committee on Economics, in Canberra this morning. Governor Stevens read a prepared statement which was then followed by a question and answer session.

Interestingly, the Australian dollar has fallen throughout the day but dropped especially quickly at 12pm (AEDT) after a comment from the Reserve Bank Governor; Glenn Stevens signaling that he is content with the level rates are at (4.75 pct). He said that the central bank "is ahead of the game...and that's the thing that affords you periods of sitting, waiting and watching and sometimes they can be reasonably lengthy periods of time."

As a general rule, you would expect currencies to weaken when there is a surprise indication (contrary to market expectations) that rates will stay on hold or fall.

The Australian dollar currently buys US99.87 cents.