The Australian stock market was lower at noon after Australian Bureau of Statistics data showed housing finance fell more than forecast in August.
At 1205 AEDT, the benchmark S&P/ASX200 index fell 0.75% to 5,191.5 points, while the broader All Ordinaries index slipped 0.72% to 5,191.4 points.
The market has shrugged off strong leads from Wall Street at the end of last week on rising optimism about a deal to avoid a United States debt default.
IG market strategist Evan Lucas said the release of trade balance data out of China over the weekend had the potential to give the market a short-term bounce, but he warned of the unknown affect the ongoing US budget negotiations would have.
"The impact to the ASX is still unclear at this point: the US leads are hard to judge considering the optimism around the political impasse," he said.