Australia shares fall as disappointing retail sales add to economy fears

(Repeats to add author's names)

* Lowest level since January

* Economic data worse than expected

* No rate cut likely

SYDNEY/WELLINGTON, June 4 (Reuters) - Australian shares fell for a fourth consecutive session on Thursday as weak retail sales and trade data stoked concerns about the economy.

Retail sales were flat, missing forecasts of slight growth, while the country's balance of goods and services was a bigger deficit than expected, official figures for April showed, indicating two earlier interest rate cuts in 2015 have failed to have an impact.

Even still, the Reserve Bank of Australia on Tuesday kept its policy rate on hold and gave little indication it will ease again in the near future.

"(The Reserve Bank governor) hasn't got much further to go, in terms of how much further he can come down," said Quay Equities managing director David Reynolds.

Concerns about whether Greece can strike a deal with Europe that can save it from default were also keeping investors cautious, Reynolds added.

By 0226 GMT, the S&P/ASX 200 index was down 19.2 points or 0.3 percent at 5,564.4, its lowest intraday level since Jan. 29.

The benchmark has now lost 7 percent since mid-April.

Banks, which write more home loans and offer more competitive dividend yields when rates go down, led the market lower.

National Australia Bank fell 0.5 percent while Australia and New Zealind Banking Group dipped 0.3 percent and Westpac Banking Corp and Commonwealth Bank of Australia both eased 1 percent.

Large resources stocks also backtracked.

BHP Billiton (NYSE: BBL - news) fell nearly 1 percent while iron ore producing rival Fortescue Metals Group dropped 2.3 percent, while Rio Tinto (Xetra: 855018 - news) gave up 0.2 percent.

Africa-focused diversified resources explorer Syrah Resources tumbled 8.5 percent.

Energy stocks followed oil prices lower. Woodside Petroleum (Xetra: WOPA.DE - news) declined 0.7 percent, Oil Search dropped 0.8 percent and refiner-retailer Caltex Australia was down 1.5 percent.

Supermarket operators were also weaker. Wesfarmers, owner of No.2 grocer Coles, lost 0.9 percent and larger Woolworths was down 0.1 percent.

Grocery supplier Metcash tumbled 17 percent, the biggest loser on the market, after warning it would write down its assets by $500 million to reflect competitive trading conditions.

New Zealand's benchmark NZX50 share index was flat at 5,858.24, with support for selected top stocks and small-cap companies.

Telecommunciations operator Spark was down 1.4 percent, overshadowing lesser gains for Fletcher Building (NZSE: FBU.NZ - news) , Contact Energy (NZSE: CEN.NZ - news) and Auckland International Airport (Shanghai: 600463.SS - news) .

The strongest rise was for small fast-food operator Burger Fuel,which bounded 23 percent higher after announcing a partnership to enter the U.S. market.

Restaurant Brands (Berlin: 0R6.BE - news) , which operates KFC, Pizza Hut, Starbucks (Swiss: SBUX.SW - news) and Carl's Junior franchises, hit a record high after reporting a strong rise in first-quarter sales.

Consumer and retail stocks were firmer, with discount retail chain the Warehouse Group up 1.8 percent and clothing retail Hallenstein up 4 percent.

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($1 = 1.2943 Australian dollars) (Reporting by Byron Kaye and Gyles Beckford; Editing by Kim Coghill)