New Zealand Dollar Down Late on Softer Australian Dollar

 
   By Lucy Craymer 
 

        WELLINGTON--The New Zealand dollar is trading lower late Wednesday against the U.S. dollar due to a softer Australian dollar.
        The Australian dollar flirted with the 2014 low of US$0.8660 on news of weaker-than-expected retail sales data in August, which has helped cement the idea the central bank is in no position to raise interest rates as the economy tarries in rebalancing after the mining investment boom.
        Chris Hunter, Corporate Dealing Manager at Western Union Business Solutions, said the weaker Australian dollar weighed on the Kiwi, which had been consolidating after recent falls.
        Late Wednesday in New Zealand, the Kiwi was at US$0.7772 compared with US$7803 late Tuesday. It, however, was at A$0.8966 compared with A$0.8917 late Tuesday as the Australian dollar was more impacted by the softer data.
        Focus for the currency now turns to the GlobalDairyTrade auction later in the global day.
        "We don't have a strong view on price direction at this auction. But it is worth noting prices will need to bounce a fair chunk in coming months in order to justify Fonterra's recently-lowered milk price forecast of NZ$5.30," said Bank of New Zealand strategist Kymberly Martin.
        Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer
        (END) Dow Jones Newswires

        October 01, 2014 00:58 ET (04:58 GMT)