• Australian mining stocks fall as much as 1%, adding to the broader benchmark's 0.2% decline

• Copper prices fell alongside broader industrial metals as the dollar strengthened after U.S. inflation data left expectations for next month's Federal Reserve interest rate decision unaffected

• Sector leaders BHP and Rio Tinto fall as much as 0.7% and 3.8%, respectively

• Both stocks on pace for second straight day of losses

• YTD, AXMM up 18.2%, including the day's moves, eclipsing AXJO's 5.4% rise

(Reporting by Nikita Maria Jino in Bengaluru)