WELLINGTON (Dow Jones)--The New Zealand dollar was trading higher late Wednesday, bolstered by a weak U.S. dollar after minutes from the Federal Reserve Open Market Committee's September meeting showed increased support for another round of quantitative easing. "The euro and the Australian dollar are also stronger. It is really just a bit of U.S. dollar weakness after the FOMC minutes," said ANZ foreign exchange manager Murray Hindley. Hindley said the Kiwi may test last week's high of US$0.7591 in the near term, "opening up the 0.76s." He tipped support at US$0.7535. Bank of New Zealand foreign exchange strategist Mike Jones said a combination of broad-based U.S. dollar weakness and solid New Zealand dollar demand from commercial and real money accounts will limit dips to US$0.7500 and a test of the 2009 high of US$0.7630 "is looking likely in coming session." Hindley agreed the New Zealand dollar's strength "is really a weak U.S. dollar story" but said investors are keen to see Thursday's August retail sales data as well as housing data from the Real Estate Institute of New Zealand for any cues on the strength of the domestic economy's recovery. Investors will also be focused on the government's full-year accounts to June 30, in particular as Finance Minister Bill English is due to give a speech. Government bonds and interest rates swaps were "very quiet," said a local bond trader. "The New Zealand market has been very comfortable with its pricing and hence the tight ranges. Hopefully some data (Thursday) will wake things out of the slumber."

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