Aust stocks open slightly lower

Local market slips after mixed economic data in the US, continued Iraq violence.

The Australian sharemarket has opened slightly weaker following mixed economic data in the US overnight, as well as continued violence in Iraq.

At the 10.15am (AEST) official market open, the S&P/ASX200 index fell 11.1 points, or 0.21%, to 5,389.6 points, while the broader All Ordinaries index shed 11.1 points, or 0.21%, to 5,369.6 points.

Offshore, US stocks closed higher as investors wait for the result of the Federal Reserve's monetary policy meeting.

Official data showed new US home construction and applications for building permits slowed sharply in May, while US consumer prices jumped in the same month.

IG market strategist Stan Shamu said the mildly weaker Australian dollar will be one of the few bright spots for the local market today.

"Should the weakness continue in the short term, this could be a trigger for a near-term recovery," Mr Shamu said.

"Energy plays could come under pressure after oil dropped on confirmation the conflict in Iraq hasn’t impacted supplies.