Australia shares extend losses; investors brace for Fed decision

* Investors await FOMC meeting outcome

* Mining stocks fall for third straight day

* Lender CBA partners with Tesla for EV loans

Sept 20 (Reuters) - Australian shares ended lower for a third straight session amid broad-based losses on Wednesday, as investors avoided risky bets ahead of a key policy decision from the U.S. Federal Reserve.

The S&P/ASX 200 index closed 0.5% lower at 7,163.30. The benchmark ended 0.5% lower on Tuesday as well.

Financial markets have priced in an all-but-certain 99% probability that the U.S. central bank will leave its key Fed funds target rate at 5.25%-5.00% later in the day, and a growing 70.9% likelihood of standing pat at its next meeting in November, according to CME's FedWatch tool.

"We are seeing traders taking some risk off the table ahead of some potential volatility in the aftermath of the FOMC meeting," said KCM Trade analyst Tim Waterer.

Glenn Yin, who heads research and analysis at AETOS Capital Group, said he expects the decision to influence the monetary policy of the Reserve Bank of Australia (RBA) and other central banks.

The RBA has signalled the need for further tightening if inflation remains persistent, according to the minutes of its September meeting.

On the domestic bourse, energy stocks fell 1.8% to their lowest level in three weeks, tracking a decline in oil prices ahead of the Fed's policy decision.

Santos inched 1.9% lower, while Woodside Energy fell 2.1%.

Mining stocks also took a beating for a third straight day and fell 1.2% on lower iron ore and copper prices.

Technology stocks slid 1.3% following overnight Wall Street losses.

Separately, the Commonwealth Bank of Australia said it has partnered with Tesla to allow the automaker's customers to avail financing for electric vehicle (EV) purchases. Shares of the lender ended 0.3% lower.

New Zealand's benchmark S&P/NZX 50 index fell 0.2% to finish the session at 11,324.82.

The country's current account deficit narrowed in the second quarter, official data showed. (Reporting by Poonam Behura in Bengaluru; Editing by Sonia Cheema)