Miners soften blow as shares slide on rate hike worries

Australia's share market has traded lower for a second straight session, but pared early losses as major miners BHP and Rio Tinto swung positive by the close.

The S&P/ASX slipped 6.4 points lower on Thursday, down 0.07 per cent, as the broader All Ordinaries lost 13.7 points, or 0.15 per cent, to 9,236.9.

Fears of higher interest rates continued to weigh on the bourse after Wednesday's inflation surprise, dragging most rate-sensitive sectors into the red, while US threats of military intervention in Iran further dampened investor sentiment.

Only basic materials and energy stocks ended the session clearly higher as gold topped $US5,591 ($A7,887) an ounce, while Rio Tinto and BHP bounced late in the session after Beijing cut red tape for China's property developers.

The Australian dollar is buying 70.91 US cents, up from 70.04 US cents on Wednesday at 5pm, soaring to three-year highs on greenback weakness, strong commodity prices, and narrowing odds of a Reserve Bank interest rate cut next week.