By Swati Pandey
SYDNEY, Sept 22 (Reuters) - The Australian dollar extended losses to touch a 3-week trough on Friday, hurt by falling metals and iron ore prices, while its New Zealand cousin drifted further away from the 1-1/2 month peak touched earlier this week.
The Australian dollar went as low as $0.7908, a level not seen since Aug.31. For the week, it has fallen 1 percent and was on track for its worst weekly showing since early July.
The losses were led by a 1.2 percent drop on Thursday, the Aussie's biggest one-day decline in 4-1/2 months, following comments from the country's central bank governor that were less hawkish than some had anticipated. Investors were pricing in a rate hike in Australia as early as mid-2018 after some major central banks moved to dial down stimulus in recent weeks. But Governor Philip Lowe wrongfooted hawks by saying the Reserve Bank of Australia...