With Mountain Lion comes the ability to use Pages and Numbers and save those files to your iCloud account. In fact iWork apps tend to show you that as the default – Apple likes the idea of the cloud rather than the more traditional file and folder concept that most of us are more familiar with.

Moving files between iCloud and your Mac, click to open the menu
While there is no way in Finder to browse the files in your iCloud storage you can move files in and out.
It’s done via the file application that is associated with the file, so in this example Pages.
I’ve got a file named Blank open, the trick is to click the little triangle next to the file name in the top status bar of the app.From here you’ll see an option Move To… Clicking that allows you then to choose a location to move the file.
Of course you can do the opposite as well, open a file that is somewhere on your local Mac and you can choose to move it to iCloud in much the same way. Yes it’s one file at a time but as far as I know it’s the only way to do it. If you know of another way post it in the comments here!

Can you drag a file from the iCloud open dialog to your mac? When i do it it says “File can’t be converted”
Never mind, just had to rename the iWork folder to “iWork ’09″ so the Finder could move the file.