The Australian sharemarket finished lower after speculation that the US central bank would hike interest rates this year weighed on prices for base metals, sending down miners.

The Australian sharemarket trod water as investors paused to assess the durability of the relief rally fuelled by the US-Iran deal to reopen the Strait of Hormuz.

The Australian sharemarket lacked direction in early trade, tracking a patchy day on Wall Street where investors rotated out of technology shares.