NZ dollar drifts as RBNZ awaited; bonds slip

* Kiwi drifts as markets seek direction

* Focus on RBNZ official cash rate review

WELLINGTON, Oct 23 - The New Zealand dollar drifted higher in range-trading on Friday, as currency markets sought direction and local investors turned their attention to an interest rate review next week.

The kiwi held a range below $0.76, unable to mount a serious challenge at the 15-month high of $0.7635 struck on Thursday, despite the U.S. dollar sliding across the board on expectations that U.S. interest rates would be held low for some time.

"Currencies like the kiwi have been struggling, so I think the risk is we could see some sort of retraction (in offshore trade)," said Tim Kelleher, manager global markets at ASB Bank.

The kiwi <NZD=D4> was at $0.7564/74 at 0345 GMT compared with $0.7522/28 in late local trade on Thursday. It traded between $0.7558 and $0.7596 in the local session.

Attention is now on the New Zealand central bank's official cash rate review on Thursday. All 18 analysts in a Reuters poll released on Friday expect the central bank to leave rates unchanged at a record low 2.50 percent. [ID:nWEL446888]

The accompanying statement is widely expected to reveal a shift to a neutral bias, with the Reuters poll showing rates are expected to rise during the first half of 2010.

Other data next week includes consumer confidence on Tuesday, business confidence on Wednesday and trade on Thursday.

New Zealand markets are closed on Monday for the Labour Day holiday.

Government debt was weaker in line with falling U.S. Treasuries, with the yield on the benchmark 10-year bond <NZ10YT=RR> 4 basis points higher at 5.83 percent.