Lorde has now responded to Azalea telling the Herald Sun: "I enjoyed it. I had a good time. That's all that mattered.
"I've been in a position where I've said something in an interview where I've thought, 'Damn, I wish I could take that back'. I don't know how (Iggy) is feeling about it.
"But anyone who's doing well deserves respect, and I respect what she's doing."
Meanwhile, Lorde insists "comfort is important" when performing concerts.
The 17-year-old star shuns the notion of wearing revealing ensembles when singing to large crowds.
Instead she chooses something which makes her feel secure and gives her freedom to move about.
"I don't like to be constricted when I'm on stage, so comfort is important. I've been wearing a Stella McCartney suit and a bunch of really crazy Rick Owens jumpsuits," she told the British edition of InStyle magazine.
"I usually wear flats so I can dance around."
- AAP