Iron ore has dropped below $US90 a tonne, triggering steep losses in the mining sector and a near four-week low for the share market.

The All Ordinaries Index lost 10 points to close at 5,381 while the ASX200 fell by 12 points to finish on 5,401.

Iron ore stocks took another battering on lower prices with Fortescue Metals shedding 3 per cent to close at $3.94. Its bigger rival Rio Tinto lost 1 per cent to finish at $57.45.

Gold miners were also out of favour with Newcrest Mining losing 2.5 per cent to close at $9.97.

Energy shares dropped after oil giant Royal Dutch Shell announced it is selling most of its majority stake in Woodside in a deal worth around $5.3 billion after tax.

Shell will cut its 23 per cent stake in Woodside to around 4 per cent as part of a global asset sale.

Woodside will buy back just under 10 per cent of its shares if shareholders approve the plan. Woodside shares were placed in a trading halt before the announcement.

Elsewhere in the sector Santos closed down 1.5 per cent to finish at $14.50.

Bank stocks retreated with Westpac faring the worst, down 0.5 per cent to $34.14.

The Reserve Bank has reiterated it will keep interest rates stable for some time yet, but economists believe it is less certain about the future.

The minutes from the board's June meeting show low interest rates are supporting some parts of the economy, but the strength in the dollar, falling mining activity and tighter-than-expected government spending after the budget could restrict growth.

The dollar fell after the release of the minutes and about 5:00pm (AEST) it was buying 93.5 US cents.

West Texas crude oil closed at $US107.42 a barrel, Singapore Tapis crude was worth $US116.04 a barrel and spot gold was fetching just under $US1,265 an ounce.