The benchmark S&P/ASX200 eased 5 points to 5447.7, while the broader All Ordinaries slipped 3 points to 5431.1.

The local market got off to a positive start after shares on Wall Street rose more than 1 per cent. US shares were boosted by strong corporate earnings results as well as positive consumer confidence numbers which rose to a near seven-year high.

The US Federal Reserve is expected to wrap-up its quantitative easing program overnight on Wednesday, which means markets will once again begin to focus on US growth and when the central banks will begin to move rates up, Tribeca senior fund manager Sean Fenton said.

"I think we're back into more volatility as markets once again focus on the prospect of higher US rates," Mr Fenton said. "We see the US dollar starting to rally again."

The local bank reporting season due to kick off on Thursday with National Australia Bank, and the big four were significant weights on the ASX.

NAB fell 0.6 per cent to $34.38, ANZ, which reports Friday, slipped 1.4 per cent to 32.93. Commonwealth Bank, reporting Tuesday, fell 0.8 per cent to $79.58 and Westpac, which reports Monday, shed 2.1 per cent to $34.17.

Mr Fenton said there was a lot of uncertainty surrounding the banks with the Murray Inquiry due to report soon.

"We're dealing with a pretty flat consumer domestically, a currency that's really still too high to get growth going and some regulatory uncertainty around the biggest part of our market – the banks," he said.

Resources stocks rallied after falling the previous day. BHP Billiton added 1.4 per cent $33.78 and Rio Tinto gained 1.1 per cent to $59.65. Fortescue Metals Group advanced 3 per cent.

Supermarket owners Woolworths and Wesfarmers also supported the market, gaining 0.6 per cent to $35.50 and 0.8 per cent to $43.35, respectively.

Annual general meeting season continued as JB Hi-Fi surged 9 per cent to $16.10, the biggest gainer for the day, despite the retailer reporting that same-store sales growth had fallen 2.1 per cent compared with last year. However, the electronics retailer said it was still on target to meet its guidance of 3.4 per cent sales growth for the full financial year.

Transpacific Industries shares jumped 3.5 per cent to 90¢ despite the waste handler's chief executive Bob Boucher warnings of tough business conditions thanks to weakness in the mining and manufacturering sectors. Mr Boucer said the company was exploring other avenues of revenue growth including bolt-on acquisitions and productivity gains.

Shares in private health insurer nib dropped 1.6 per cent to $3.12 after the company's chief executive told shareholders it would be the 2 per cent to 3 per cent growth in policy holders expected this year.

Shares in GPT Group shares were flat at $4.03 despite the real estate group upgrading its guidance to at least 4 per cent earnings growth per security for 2014.

The New South Wales government on Wednesday announced the selection of Healthscope as the preferred bidder for a hospital project in the Northern Beaches. Healthscope beat out fellow private hospital provider Ramsay Health Scare as well as Macquarie University Hospital Group. Healthscope shares finished the day 1.6 per cent higher at $2.50.

Shares in listed insurance broker Steadfast gained 0.7 per cent to $1.45 after the company's chairman, Frank O'Halloran, said he would not hesitate to go to shareholders to raise capital for acquisitions.