Meanwhile, mining stocks slipped, weighed down by weak prices across metals. Global miner BHP Group Ltd and top gold producer Newcrest Mining Ltd fell 1.7% and 1.3%, respectively.
"The RBA has said it wants to be confident in inflation being sustained above 2% before it raises interest rates for the first time, hence our expectation of the first move not occurring until the second half of 2023," said Plank.
Australian government bond futures eased too, with the three-year bond contract off 1 tick at 99.74 ticks, implying yield of 0.25% when the cash rate is at 0.1% now.
Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle recently noted the central bank was now often buying more bonds in a week than the government was selling.
Three of the "Big Four" banks traded in red, while Westpac Banking Corp jumped as much as 0.7%, extending gains into a second day after it reported an over three-fold jump in its first-half cash earnings.
That left the currency flat at $0.7860, from a top of $0.8007, having shed 1.2% late on Thursday. It also wiped out the week's gains and put pressure on support around $0.7820.