Late Change NZD/USD 0.8328 -0.0022 NZD/AUD 0.7941 -0.0018 NZD/JPY 63.85 -0.185 April 2013 Bond 3.00% +3.0 bps May 2021 Bond 4.48% unchanged 10-Year U.S. Spread +232 bps +7.0 bps 90-Day Bank Bill 2.89% -3.0 bps WELLINGTON (Dow Jones)--The New Zealand dollar was trading slightly lower Thursday on some risk aversion as Asian equity markets lost ground, though traders said the moves were being exacerbated by light liquidity. "It looks like just a bit of equity erosion," said Western Union Business Solutions corporate dealing manager Chris Hunter. He also said markets remain disappointed by "a lack of anything really concrete or definitive" from the Swiss National Bank to cap the franc's strength. HiFX Senior Trader Stuart Ive said trading, however, remained extremely choppy partly due to light liquidity. "I think it is just some flows coming into the market. Unfortunately, with everything that's happened in the last few weeks liquidity has evaporated," he said. A lack of domestic data means that the focus remains offshore, Hunter said. He said investors will be watching for U.S. consumer inflation data and existing home sales later in the global trading day. Both Hunter and Ive said the main focus will then shift to Federal Reserve Chairman Ben Bernanke's highly anticipated speech at Jackson Hole on Aug. 26. Hunter said short-term support is around US$0.8290 while resistance is at US$0.8380. Government bonds ended weaker at the short end and a local bond trader said there was little action. Offshore volatility has curbed some demand for bonds. Earlier Thursday, the Debt Management Office decided to offer just NZ$50 million worth of its April 2023 bond at tender, the smallest since October 2008. The DMO received NZ$83 million of offers and sold all the bonds. -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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