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By John Biju and Aaditya GovindRao

Aug 8 (Reuters) -Australian shares retreated on Thursday, dragged down by heavyweight mining stocks as iron ore prices extended losses for a third consecutive session, while hawkish comments from the country's central bank added to the losses.

The S&P/ASX 200 index .AXJO was down 0.2% at 7,682 points, snapping two straight sessions of gains.

Iron ore future prices fell on Thursday, with the Singapore benchmark declining below the key psychological level of $100 a metric ton, after talks of steel output curbs in top consumer China. IRONORE/

Australia is a resources-heavy bourse and many of the top heavyweights on the benchmark index are miners. A decline in iron ore prices could weigh on their profits.

The mining index .AXMM shed 2% to hit its lowest level since early November 2022.

Top miners BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX fell 1.8%-2.1%.

Meanwhile, the chief of the Reserve Bank of Australia (RBA) said the central bank will not hesitate to raise interest rates if needed to control inflation, adding to the sombre mood in markets, days afterholding rates.

The comments "have not only poured freezing cold water on surging rate cut prospects but also brought back the unwelcome narrative of 'higher-for-longer,' which is undoubtedly a major source of disappointment for most sectors except financials" said Hebe Chen, market analyst at IG Markets.

However, investors are still wagering a 46% chance that the RBA could begin lowering rates in November.

Real estate .AXRE, energy .AXEJ and gold .AXGD stocks fell 1.2%-2.9%.

In contrast, heavyweight financial stocks .AXFJ gained 1%, with the 'big four' banks up 0.8%-1.6%.

"Big buyers are buying the banks ahead of their earnings reports in anticipation of a positive result," said Tony Sycamore, market analyst at IG Australia.

"Hedge funds have been shorting the big banks so after the recent decline (global selloff), they may want to take profits on those shorts."

Wealth managerAMP AMP.AX rose 13.3% to hit its highest since Sept. 20, 2023 after it reported a higher half-year profit.

New Zealand's benchmark S&P/NZX 50 index .NZ50 retreated 0.6% to 12,257.28.

Reporting by John Biju in Bengaluru; Editing by Sonia Cheema

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