By REBECCA HOWARD WELLINGTON--The New Zealand dollar was trading lower late Monday, weighed by a fall in hard commodities, in particular gold. The New Zealand dollar "has certainly been under pressure in our session...it sold on the back of gold selling early into Asia," said ANZ Foreign Exchange Manager Murray Hindley. Gold prices were tracking the risk-off sentiment in wider markets, ANZ analysts said in a note. "Chinese data over the weekend showing bank lending growth was weaker than expected in September has likely prompted this morning's negative price action," they said. Risk appetite was also subdued ahead of Chinese quarterly growth figures due later this week and the upcoming European leaders' summit. BNZ FX Strategist Mike Jones said the Chinese data would be key, especially as Chinese data over the past month or so have failed to show any significant response to recent policy stimulus. "Investors are hopeful this week's September data will provide some evidence of a bottoming in activity," he said. Further weakness, however, could prove to be the catalyst for a sustained break of the US$0.8145 support level for the Kiwi, he added. Locally, the market will be focused on Tuesday's third-quarter inflation data. Consumer prices are expected to have risen 0.5% on the quarter and 1.0% on the year, according to the median forecast of 14 economists polled by the Wall Street Journal. This week's GlobalDairyTrade Internet-based auction will also garner interest as investors are keen to see how dairy prices are faring. Government bonds ended higher in a lackluster session. A local bond trader said there was very little activity with the market largely treading water. He said that Tuesday's inflation data may give the market some impetus.

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