* Financials clock highest close since mid-Feb 2023

* U.S. data to help Fed determine its monetary policy path

* NZ benchmark index closed 0.3% higher

Jan 11 (Reuters) - Australian shares ended higher on Thursday, underpinned by financials, while investors shifted their focus to U.S. inflation data due later in the day for possible clues on when the Federal Reserve could begin cutting its interest rates.

The S&P/ASX 200 index closed 0.5% higher at 7,506 points. The benchmark index ended 0.7% lower on Wednesday.

Attention is on the U.S. December consumer price index report (CPI) due later on Thursday, with core CPI forecast to remain unchanged at 0.3% from the month before, while year-on-year inflation is expected to slow to 3.8% from November, as per a Reuters poll.

Markets are pricing in a 67% chance of a rate cut in March, according to the CME FedWatch tool.

"The balancing act between cutting rates and the slowing inflation is the question ahead of the central banks," said Brad Smoling, managing director, Smoling Stockbroking.

Meanwhile, data from the Australian Bureau of Statistics showed that the country's surplus on trade goods surged to an eight-month high in November.

Heavyweight banking stocks ended the session 1.1% higher, clocking their highest closing since mid-Feb 2023. The "Big Four" banks rose between 0.9% and 1.4%.

Smoling said the gains in financials is the effect of the positive domestic inflation data from Wednesday, which showed that inflation slumped to a near two-year low in November, and reinforced expectations interest rates would not need to rise any further.

Tracking peers on Wall Street, Australian technology stocks ended 1.2% higher, with sector majors Wisetech Global and Xero each closing around 1% higher.

Consumer stocks rose 0.2%, with retail conglomerate Wesfarmers ending 0.5% higher.

Gold stocks ended 0.1% lower.

New Zealand's benchmark S&P/NZX 50 index closed 0.3% higher at 11,803.02 points. (Reporting by Sherin Sunny in Bengaluru; Editing by Sherry Jacob-Phillips)