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By Shivangi Lahiri

March 19 (Reuters) - Australian shares ended lower on Wednesday, dragged down by the mining and real estate sectors, as investors awaited the U.S. Federal Reserve's policy decision and new economic projections due later in the day.

The S&P/ASX 200 main index .AXJO closed 0.4% lower at 7,828.3 points, snapping a three-session gaining streak with most sectors in the negative territory.

The benchmark index, which rallied 7.5% last year, has wiped off more than half of those gains so far in 2025.

"The pullback of late is naturally expected given the now uncertain outlook clouding earnings growth across many industries, especially those with exposure to the U.S. import market," said Grady Wulff, market analyst with BellDirect.

At the conclusion of the Fed's two-day policy meeting on Wednesday, several banks and researchers expect the central bank to hold rates or at least slow the pace of further cuts.

The Fed holding policy will add pressure to Australia's rate-sensitive growth sectors like tech, real estate and discretionary, which do not thrive in a high interest rate environment, Wulff added.

Real estate stocks .AXRE slid 1.3% and were the biggest drag on the benchmark index, with Goodman Group GMG.AX falling 1.6%.

The tech sub-index .AXIJ slipped 1%, led by 0.9% and 2.3% declines in Xero XRO.AX and WiseTech Global WTC.AX, respectively.

Domestic miners .AXMM ended 0.5% lower, as concerns over demand prospects and a persistent fall in housing prices in China led to a softening in iron ore prices. IRONORE/

Mineral Resources MIN.AX closed the day 4.4% lower, as the miner temporarily paused haulage from its Onslow Iron project following a road train accident.

The local jobs data, due Thursday, is also on investors' radar, where any upside surprise could influence the Reserve Bank of Australia to keep rates steady longer.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed down 0.3% at 12,045.93.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Eileen Soreng)

((shivangi.lahiri@thomsonreuters.com))

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