WELLINGTON (Dow Jones)--The New Zealand dollar was trading lower late Wednesday after losing ground overnight on rising risk aversion, although it pared some losses as market sentiment improved. Westpac currency strategist Imre Speizer said the Kiwi largely tracked the euro higher over the course of the afternoon. He noted that Asian equity markets are slightly higher and U.S. stock index futures are also in positive territory, adding to improving risk appetite. "The trade is dominated by equities and by risk appetite in general. The Kiwi has just followed the euro today," he said. The euro ticked higher after the owners of Germany's troubled state-controlled lender WestLB late Tuesday reached a deal on the bank's restructuring and downsizing, just before a midnight deadline set by the European Commission passed. Speizer said that support on the Kiwi would likely hold around US$0.7500 while resistance was around US$0.7650. Traders said that equity markets later in the global trading day would continue to be the main driver. Government bonds ended weaker at the long end and a local bond dealer said that trading had been extremely quiet. He noted that the bond tender on Thursday is smaller than it has been recently, "largely reflecting the lack of demand." -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

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