June 22 (Reuters) - Australian shares declined on Thursday, led by technology and commodity stocks in broad-based selling, after U.S. Fed Chair Jerome Powell said the fight to lower inflation still had a "long way" to go.

The S&P/ASX 200 index fell 0.8% to 7,253.7 by 0045 GMT and was on track for its worst session in two weeks if current losses held. The benchmark closed 0.3% lower on Wednesday.

Investor sentiment took a hit after Powell emphasised in his congressional testimony the U.S. central bank's intention to continue with rate hikes, with another increase expected in July.

In Sydney, technology stocks lost the most, shedding about 2.3% after the Nasdaq closed lower overnight. Accounting software provider Xero fell 1.9%.

Miners dropped 1% after iron ore prices extended their fall overnight as markets players stayed on the sidelines for more stimulus measures from top steel producer China.

The mining triumvirate Rio Tinto, BHP Group and Fortescue slipped between 0.5% and 1.3%.

Gold stocks declined more than 2.2%, with sector majors Newcrest Mining and Northern Star Resources down 0.7% and 2%, respectively.

Northern Star Resources said it would expand the processing capacity of its Kalgoorlie Consolidated Gold Mines mill in Western Australia at a cost of A$1.5 billion.

Among individual stocks, Gold Road Resources fell as much as 7.7% to become the top loser on the benchmark stock index, after it lowered its fiscal year 2023 production guidance for the Gruyere gold mine.

New Zealand's benchmark S&P/NZX 50 index fell 0.5% to 11,716.1. (Reporting by Archishma Iyer in Bengaluru; Editing by Subhranshu Sahu)