* Index on track to end week 1.1 percent higher
* Index down over 6 pct so far this year
* Shares to rebound in 2016 - Reuters Poll
* 110 shares down, 78 up, 12 unchanged
By Swati Pandey and Charlotte Greenfield
SYDNEY/WELLINGTON, Dec 18 (Reuters) - Australian shares fell 0.3 percent on Friday, after a robust two-day rally, led by losses in financials and resources counters as investors booked profits ahead of the holiday season.
The S&P/ASX 200 index .AXJO slipped 17 points to 5,085.00 by 0145 GMT. The benchmark jumped 1.5 percent on Thursday and is on track for its best weekly performance since the week ending Nov 20.
The index has had a tough year, already down more than 6 percent so far and on track for its first negative annual returns since 2011.
However, analysts maintained a bullish long-term view of the index on the back of an improving macro-economic outlook and a weak Aussie dollar. The index is expected to rebound in 2016 to 5,625 points, a Reuters poll found. urn:newsml:reuters.com:*:nL3N13Y01B
On Friday, the "Big Four" banks were all in the red, with Westpac WBC.AX and National Australia Bank NAB.AX falling 0.6 percent and 1.7 percent respectively. ANZ Banking ANZ.AX slipped 1.2 percent while CBA CBA.AX was off 0.2 percent.
Among major miners, BHP Billiton (L:BLT) BHP.AX lost 2.6 percent and Rio Tinto (L:RIO) RIO.AX skidded 3 percent while Fortescue FMG.AX slumped over 5 percent.
Consumer discretionary shares such as Domino's Pizza DMP.AX and salmon grower Tassal Group TGR.AX rose 4.9 percent and 3.2 percent respectively.
For more individual stocks activity click on STXBZ
New Zealand's benchmark NZX 50 index .NZ50 edged up 0.11 percent or 6.950 points to 6,095.280 on Friday and was headed for a weekly gain of 0.4 percent.
Gains were led by A2 Milk ATM.NZ which hit a record high and rose as much 24.3 percent after the dairy producer raised its forecasts on its 2016 full year earnings. urn:newsml:reuters.com:*:nL3N1465TV
Rubber product manufacturer Skellerup SKL.NZ rose 1.38 percent, Goodman Property rose 1.3 percent and infrastructure firm Infratil IFT.NZ rose 1.11 percent.
New Zealand Refining NZR.NZ rose 1.11 percent after signing a an agreement with Vector VCT.NZ on upgrading gas production. urn:newsml:reuters.com:*:nL3N1465TV Vector gained more modestly, rising 0.64 percent.
Fuel supplier Z Energy ZEL.NZ led losses, dropping 3.28 percent after New Zealand's competition regulator further delayed its decision over Z Energy's bid to acquire Chevron (N:CVX) New Zealand. urn:newsml:reuters.com:*:nL3N1465VY