Late Change NZD/USD 0.8081 -0.0020 NZD/AUD 0.7705 +0.0013 NZD/JPY 63.142 -1.014 April 2013 Bond 2.745% -3.5 bps May 2021 Bond 4.445% -5.0 bps 10-Year U.S. Spread +230 bps +10 bps 90-Day Bank Bill 2.72% -1.0 bps WELLINGTON (Dow Jones)--The New Zealand dollar was trading lower late Tuesday after risk appetite waned overnight on euro jitters, while disappointing data from China and a rate cut from the Reserve Bank of Australia added to investors' concerns. Western Union Business Solution Corporate Dealing Manager Chris Hunter said the pair "did get dragged around a bit" on news that China's October official PMI fell to 50.4 from September's 51.2, as any signs that China's growth is slowing weighs on the Kiwi. The Kiwi also fell on news that Australia's central bank responded to sharply reduced inflation risks and cut official interest rates by one quarter of a percentage point to 4.50% from 4.75%. BNZ FX Strategist Mike Burrowes noted that the Australian rate cut was only about 80% priced in so "on delivery of a cut, it (the Australian dollar) took a hit" and the Kiwi followed suit. Hunter said that markets are also jittery after the massive intervention by the Japanese government Monday to cap the currency's rise. Domestically, investors will be watching for Thursday's third-quarter employment data and for dairy giants Fonterra's Internet-based auction of dairy products early Wednesday local time. However, traders said the main focus will be on the Federal Open Market Committee's rate decision Thursday. Government bond yields ended lower, tracking a move in U.S. Treasurys overnight. A local bond trader said they will likely also be weighed by the RBA decision when the market opens Wednesday. "It won't be going too far (down,) but it probably won't be going up," he said. -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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