NZ dollar eases on weaker A$; rates decision looms

* Kiwi falls to 9-day low on weaker Aussie, firmer U.S. dlrs

* Central bank rate view awaited, move to neutral stance seen

WELLINGTON, Oct 28 - The New Zealand dollar hit a nine-day low on Wednesday, dragged down by a weaker Australian dollar <AUD=>, on the eve of a pivotal decision on interest rates by New Zealand central bank.

A survey showing business confidence steady near 10-year highs reinforced expectations that the Reserve Bank of New Zealand (RBNZ) would close the door on another possible rate cut after its meeting on Thursday.

The bank is expected to shift its stance in the face of recent data showing the domestic economy coming out of recession earlier than expected, said ASB Bank economist Jane Turner.

"The RBNZ will need to acknowledge this recent strength and accept that it is likely to increase interest rates earlier than previously expected," Turner said in a note to clients.

The kiwi <NZD=D4> was at $0.7369 at 0410 GMT, its lowest since Oct. 19. It had been quoted at $0.7477/83 in late local trade on Tuesday.

The currency hit a 15-month high of $0.7635 last Thursday.

The kiwi fell as its aussie cousin <AUD=> dropped on inflation data which was not strong enough to bolster rate hike expectations, while the U.S. dollar consolidated recent gains as risk appetite was weaker. [ID:nSYD541217]

Business confidence dipped slightly in October from the 10-year high seen in September, but underlined the momentum of the economic recovery, and would inevitably lead to tighter monetary policy, the ANZ-National Bank said. [ID:nSYD483785]

Other data due this week includes September trade on Thursday and September building consents on Friday.

Government debt was weaker, with the yield on the benchmark 10-year bond <NZ10YT=RR> 3 basis points higher at 5.86 percent.