WELLINGTON (Dow Jones)--The New Zealand dollar was trading higher late Wednesday, benefiting from strong commodity prices and a weaker U.S. dollar. "Basically it is weak USD across the board and commodity prices performing well," said RBS Currency Strategist Greg Gibbs. Overnight, Fonterra Co-Operative Group Ltd. said its fortnightly Internet-based auction for Tuesday saw average whole-milk powder prices rise 0.5% from the previous auction, further supporting the New Zealand dollar. The Kiwi was also benefiting from risk appetite as Asian equity markets performed well. Looking ahead, Gibbs said Thursday's consumer price index data will only move the market if there is a major surprise, with the market expecting consumer prices to have gained strongly in the fourth quarter on the back of a rise in the goods and services tax. Consumer prices likely rose 2.4% from the previous quarter and 4.1% from a year earlier, according to the median forecasts of 12 economists polled by Dow Jones Newswires. The Reserve Bank of New Zealand is tipping consumer prices to increase 2.3% in the quarter. Government bonds ended slightly weaker but a local bond trader said trading was very subdued with investors waiting for Thursday's CPI figures and the government's bond tender. The government is planning to tender NZ$100 million of March 2019 bonds and $100 million of May 2021 paper. -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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