The Australian dollar lost about a third of a U.S. cent on Thursday after October retail sales unexpectedly fell, denting hopes for an economic revival in the fourth quarter.
* Australian dollar soft at $0.9645, after falling as far as $0.9621. It had traded at $0.9666 before the data. Support is at the 2-1/2-month low of $0.9536 hit on Wednesday.
* Data showed retail sales in October dropped 1.1 percent, the biggest fall in 15 months, and far weaker than forecasts for a 0.3 percent rise. Sales was hurt by weaker spending on clothes, personal accessories and in departmental stores.
* Given household consumption accounts for about 55 percent of Australia's economy, October's disappointing retail sales cast doubts over whether the economy could re-accelarate in the fourth quarter, from a tepid pace the previous three months.
* That said, analysts noted the surprisingly big trade surplus in October showed Australia's booming commodity sector should drive household incomes higher in coming months. That in turn should underpin consumption. * Data showed Australia had a trade surplus of A$2.625 billion in October, bigger than forecasts for a A$2 billion trade gap.
* The New Zealand dollar fared better, holding its ground at $0.7502 to be steady from the local open, and about half a cent above late Wednesday levels.
* The kiwi seen with a strong base at Tuesday's two-month low of $0.7398, with topside resistance beginning from $0.7540.
* The New Zealand dollar has been helped by a rise in international dairy prices, the country's key export commodity.
* The retreat in the Aussie pulled it down against the kiwi to NZ$1.2849 , from NZ$1.2901 seen here late Wednesday.
* NZ govt debt eases slightly after gains in the offshore session saw yields up as much as 6 basis points.
* Australian bond futures lower, with the three-year contract down 0.01 point at 94.02, and 10-year futures off 0.065 points at 94.56. www.ibtimes.com
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