NZ dollar recovers as risk appetite firms

* Kiwi up more than a cent, recovers RBNZ-linked losses

* Risk appetite strong as U.S. data spurs markets.

WELLINGTON, Oct 30 - The New Zealand dollar was more than a cent firmer on Friday, recouping previous losses as solid data reignited risk appetite, sending growth-sensitive currencies like the kiwi higher.

The kiwi regained the ground lost on Thursday after the Reserve Bank of New Zealand (RBNZ) left rates on hold at 2.50 percent while indicating it was in no hurry to tighten monetary policy. [ID:nSYD80874]

Local trade was relatively quiet, as the market consolidated after a volatile week and looked ahead to the heavy flow of data next week, said RBC senior currency strategist Sue Trinh.

"The risk for the kiwi is still to the topside after the selloff got all the bears out of the woodwork...and a retest of 74 cents could be just around the corner," Trinh said.

The kiwi <NZD=D4> was at $0.7320/25 at 0350 GMT, compared with $0.7176/84 in late local trade on Thursday. After the RBNZ decision the kiwi dipped to a three-week low of $0.7165 <NZD=D4>.

The RBNZ said it would keep interest rates at the current level until the second half of 2010, defying the market which still expects the bank to raise rates in the first half of next year. <NZDOIS>

The U.S. dollar retreated on Thursday after data showed the U.S. economy grew faster than expected in the third quarter, reviving hopes the global economy is on path to recovery.

RBC's Trinh said the domestic data most likely to move the market next week is wages on Tuesday and jobs on Thursday, while offshore influences could come from interest rate decisions in Australia on Tuesday and the U.S. on Thursday.

Government debt was a shade firmer, with the yield on the benchmark 10-year bond <NZ10YT=RR> 1 basis point lower at 5.75 percent.