Australian stocks fell on Friday and snapped a three week winning streak after edgy investors preferred to take profit as lacklustre U.S. and euro zone economic data rekindled recovery worries.

At the close, the benchmark S&P/ASX200 Index was down 31.7 points, or 0.7 per cent, at 4601.9, falling 0.8 per cent for the week. The broader All Ordinaries Index fell 28.5 points, or 0.6 per cent, to 4651.5.

Even higher gold and firm metals prices failed to support miners as confidence eroded after a recent rally.

"Make no mistake, as much as the U.S. is trying to support its economy through easy monetary policy, many investors are reacting to the new policy regime by seeking safety in gold and other precious metals," said David Taylor, Market Analyst at CMC Markets.

"Investors are simply trying to find assets that will hold their value."

Losses were led by the gold sector, which fell 1.9 per cent, financials, down 1 per cent, and materials, down 0.7 per cent.

All major banks were in the red, with ANZ shedding 27 cents or 1.1 per cent to $23.60. National Australia Bank returned 40 cents or 1.5 per cent at $25.55, Westpac took off 23 cents to $23.49 and Commonwealth Bank finished 61 cents or 1.2 per cent lower at $51.82.

In the resources sector, market heavyweight BHP Billiton was down 18 cents at $39.04 despite clearing a regulatory hurdle facing its $39 billion takeover bid for Canada's Potash Corp.

Mining rival Rio Tinto dropped 44 cents to $75.60, following news it would invest $US230 million to boost capacity at its Dampier Port facility by five million tonnes per annum.

Fortescue Metals rose 5 cents, or 1 per cent, to $5.04.

Gold miner Newcrest fell $1.02, or 2.5 per cent, to $39.92.

With Reuters