By Rushil Dutta
Aug. 31 (Reuters) - Australian shares reached their lowest in more than six weeks on Wednesday as the U.S. dollar strengthened ahead of U.S. jobs data this week, hurting basic materials and energy stocks.
The S&P/ASX 200 index .AXJO fell 53.39 points, or 0.97 percent, to 5424.9 by 0239 GMT, its lowest since mid-July. The benchmark had closed marginally higher on Tuesday.
The dollar rose to a three-week high against a basket of currencies as investors looked ahead to U.S. payroll data this week, seeking clues to when the Federal Reserve may next raise interest rates after U.S. Fed Vice Chair Stanley Fischer said that jobs data could influence any rate decision. .DXY
"Traders are quite concerned that if we see strong (job) numbers on Friday, it could push up the U.S. dollar further and drag down commodity prices," said Angus Nicholson, an analyst with IG Markets.
"I think people are trying to hedge a bit and position themselves against that potential outcome."
Basic materials led the losses, with mining majors BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX falling about 3.2 percent each. Fortescue Metals FMG.AX shed over 3 percent.
Newcrest Mining NCM.AX and Northern Star Resources NST.AX shed 4.4 percent and 3.5 percent respectively as gold hit a two-month low. GOL/
Oil stocks fell on weaker crude oil futures, with oil producers Woodside Petroleum WPL.AX , Santos Ltd STO.AX , and Oil Search Ltd OSH.AX down 0.9 percent to 2.9 percent.
Financials, the biggest constituent on the index, wiped out the previous session's gains, with Commonwealth Bank of Australia CBA.AX losing 1.6 percent and Westpac Banking WBC.AX 1.3 percent down.
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New Zealand's benchmark S&P/NZX 50 index .NZ50 was flat at 7388.81 points.
Minor gains in consumer staples and utilities were offset by financials falling over 1 percent. Basic materials were also among the biggest losers.
Westpac Banking Corp WBC.NZ , among top losers, lost 1.8 percent, while Fonterra Shareholders' Fund FSF.NZ was 1 percent lower.