The share market is flat as caution ahead of the Reserve Bank of Australia’s November rate decision leaves the banks mixed.

Trading volumes are very light on Melbourne Cup day, as Australian Bureau of Statistics figures showing a surprisingly strong 1.2 per cent jump in retail sales fail to excite investors, says City Index head of dealing for the Asia-Pacific Biyi Cheng.

“The market still expects some news from the RBA at the moment,” he said, as economists tip the central bank will leave rates on hold at 2.5 per cent.

A mixed set of US data could be adding to the confusion, with a barometer of manufacturing activity showing a rise in October while official data show a drop in construction activity during September.

“The direction’s quite mixed in the market,” Mr Cheng said.

“So, basically, nobody is willing to build up large positions or get out of positions very quickly.”

The major banks were mixed. Westpac lost three cents to $34.52 and National Australia Bank shed 11 cents to $34.78, while ANZ added two cents to $33.60 and Commonwealth Bank was up 37 cents at $80.89.

Among the major miners, BHP Billiton gained 31 cents to $34.02, Rio Tinto added 36 cents to $60.14, and iron ore miner Fortescue Metals edged four cents higher to $3.39.

Woolworths continued to slide after announcing disappointing quarterly sales on Monday.

The supermarket giant dropped 74 cents, or two per cent, to $33.50, while Coles owner Wesfarmers dropped 17 cents to $43.98.

KEY FACTS

* At 1200 AEDT on Tuesday, the benchmark S&P/ASX200 index was up three points, or 0.05 per cent, at 5,509.9 points.

* The broader All Ordinaries index was up 3.1 points, or 0.06 per cent, at 5,488.1 points.

* The December share price index futures contract was up two points at 5,495 points, with 10,497 contracts traded.

* National turnover was 547 million securities worth $1.4 billion.