The Australian share market is being sold off today, following a flat lead from Wall Street and general weakness in commodity prices.

Australian stocks slipped 0.5 percent at lunch time, with miners dragged down by a dip in base metals prices and as Wall Street turned cautious ahead of the quarterly corporate earnings season.

Financial stocks started the day's trade on a flat note, but are being heavily sold off at lunchtime. ANZ was down 20 cents at $23.96, CBA had dropped 42 cents at $50.70, NAB was 22 cents lower at $25.58, while Westpac had lost 32 cents at $22.84.

Dealers said investors were taking a breather after the market nudged up to five-month highs on Monday, but shares were still well-positioned to rally into Christmas.

"We've had a decent run," said Bell Potter Securities client adviser Chris Kimber.

"As long as the (U.S.) reporting season doesn't have any blow-ups, any time the market comes off it will be met by reasonable buying," he said.

The U.S. profit season kicks off this week with Alcoa . Alcoa's joint venture partner Alumina slipped 1.0 percent to A$2.01 despite receiving broker upgrades.

The benchmark S&P/ASX 200 index fell 22.2 points to 4,675.3 at 0018 GMT. The index rose 0.3 percent on Monday.

New Zealand's benchmark NZX 50 index inched up 7.1 points to 3,242.4.

Top miners were weaker after base metals fell and copper retreated from a 27-month high as the U.S. dollar climbed against the euro. Benchmark copper fell $10 to end at $8,290 a tonne.

Index leader BHP Billiton has dropped 1.4pct to $40.88 while Rio Tinto (RIO) is lower by 1.5pct to $78.90. Fortescue Metals Group (FMG) which rallied by almost 8pct yesterday, is today lower by 3.2pct to $6.05.

Telstra (TLS) shares are bucking the trend on defensive buying, up 0.4pct to $2.69.

Farm chemicals group Nufarm jumped 6.1 percent to A$4.02 after news that China National Chemical Corp is in talks to buy control of MA Industries.

ChemChina and Sinochem both state run companies, have each made failed bids for Nufarm.

The Australian dollar has dipped below 98 US cents and is worth US97.94c at lunchtime in the East. It is also buying £0.6169 and €70.69c

Reuters with Comsec