The Australian stock exchange has mostly bounced back from its early losses to finish the day nearly flat as the big banks dragged on the market.

The benchmark S&P/ASX200 index finished Monday down 5.1 points, or 0.07 per cent, at 7,125.1, while the broader All Ordinaries index dropped 5.9 points, or 0.08 per cent, to 7,221.2.

The Australian dollar was trading at 67.29 US cents, down from 67.18 US on Friday as the market closed.