Aussie shares move into technical correction after fresh plunge

The Australian share market has moved into a technical correction after another volatile day of trading.

At the close of trade, the benchmark S&P/ASX 200 was down 123.30 points or 1.77 per cent to 6838.3 points after intraday losses extended to as much as 2.9 per cent.

A financial correction is traditionally defined as a decline of 10 per cent or more from the market's 52-week high.

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The ASX200 last hit its yearly high in August 2020, where it finished on 7632.8 points – some 10.4 per cent higher.

Losses were wide and varied, with some notable retreats from property websites REA Group (down 8.11 per cent) and Domain Holdings Australia (down 6.9 per cent).

Other notable shares to suffer included Domino's Pizza (down 6.39 per cent) buy now pay later service Zip Co (down 9.66 per cent) and Evolution Mining (down 11.28 per cent).

Not every company fell, with gains felt by Rio Tinto (up 2.06 per cent), Woodside Petroleum (up 2.49 per cent) and ANZ (up 1.12 per cent).

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Today, the National Australia Bank revised its forecast for when the Reserve Bank of Australia will next hike up interest rates, arguing that bigger-than-expected inflation data will force the board's hand.

"We now see the first RBA rate hike occurring in November, with follow-up hikes in December 2022 and February 2023," the bank's economists wrote in a research note.

"A likely move of 15bps followed by 25bp hikes at each of the next two meetings will take the target cash rate to 0.75 per cent by February 2023, while the actual cash rate will trade between 50-75bps."

Despite this forecast, NAB said there was a "risk" that the RBA hikes rates earlier and the bank will be considering board meetings "live" from August 2022.

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