* NZ$ eases half a cent to $0.7283 on soft domestic data * A$ near 5-mth highs, eyes peak for the year By Mantik Kusjanto and Wayne Cole SYDNEY/WELLINGTON, Sept 14 (Reuters) - The New Zealand dollar retreated from five-week highs as soft retail sales and housing data further reduced the already slender chance of a rise in domestic interest rates this week. The Australian dollar fared better to hold around $0.9330 , after a run of strong domestic and Chinese economic news propelled it to a five-month peak of $0.9363 late on Monday. The kiwi pulled back to $0.7283, from an offshore peak of $0.7346. The data prompted investors to book some profit on the high yielder, which has risen more than five percent in the past two weeks on receding fears of a global slowdown. The figures reinforced expectations the Reserve Bank of New Zealand (RBNZ) will keep rates on hold beyond this week, capping its gains even as global appetite for risky trades improved. "The RBNZ will most probably retain the cash rate at its present setting for the balance of this year," said Deutsche bank chief economist Darren Gibbs. Tuesday's data showed a disappointing 0.4 percent drop in July retail sales and a 2.8 percent fall in house sales in August. For more, see [ID:nSGE68C05L] and [ID:nWEL004158] The NZ dollar was seen supported around $0.7250, with resistance at the early August high of $0.7356, ahead of $0.7400. The pullback also pushed the Aussie/kiwi pair to NZ$1.2797, near a two week high of NZ$1.2806 thanks to stronger Aussie fundamentals and better returns. Market pricing slipped further to imply a 6 percent chance of a hike on Sept. 16 from 8 percent at the market open and 20 percent earlier this month . The swap curve also steepened after the data, while bonds <0#NZTSY> maintained early strength, with yields down about one basis point across the curve. The pullback in the Kiwi initially spilled over into the Australian dollar, dragging it back as far as $0.9319. The Aussie was also sideswiped by a rise in the yen to 15-year highs on the U.S. dollar . The local dollar faded to 77.80 yen , from an early 78.34. Markets were still waiting to hear who would win the Japanese leadership vote [ID:nTOE68D00F]. Still, the Aussie has solid chart support at $0.9275 and momentum favours a test of the year's $0.9389 high. ` Domesitc data showed NAB's measure of business confidence rebounded 9 points to 11 in August, while conditions held steady at 5 points [ID:nSDYEKE6EW]. The details of the survey were more mixed, however, and did little to clarify the outlook for interest rates. Interbank futures <0#YIB:> imply around a 60 pct chance of a rate hike by Christmas given the recent run of upbeat domestic numbers. Australian bonds recouped a little of their recent hefty losses. Three-year bond futures added 0.030 points to 95.290, while 10-year futures rose 0.025 points to 94.960.

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