Australian shares drop as Trump rally loses steam

The local share market has slipped for the first time since Donald Trump's inauguration amid fears over what the US president's promised tariffs might do for trade with China.

The benchmark S&P/ASX200 index on Thursday dropped 51 points, or 0.61 per cent, to 8,378.7, while the broader All Ordinaries dropped 51.4 points, or 0.59 per cent, to 8,629.1.

The Australian dollar meanwhile was close to a one-month high against its US counterpart, buying 62.72 US cents, from 62.66 US cents at close of business Wednesday.