Investors watched early gains erode and heavyweight banks and miners trend lower as the Australian share market closed slightly down.

The S&P/ASX200 benchmark index started higher from a good US lead, but finished down by 11.4 points, or 0.18 per cent, to 6155.6 on Monday.

The All Ordinaries closed lower by 16.4 points, or 0.26 per cent, to 6357.3.

The Aussie dollar was buying 71.18 US cents at 1426 AEDT, higher from 71.07 US cents at the close of trade on Friday.