If it ends with an "o" or a "y" sound, it's probably an Australian (nick)name! Merlie is precisely that, a girl's name of Australian origin, meaning "of Merlin." The Merlin in question is, of course, the mythical wizard who featured prominently in the legend of King Arthur and was best known for his magic. Merlin helped King Arthur find his sword, so basically, he was Alfred to Arthur's Batman, but 900 years ago. Or Patrick to Arthur's Spongebob. Groundskeeper Willie to Springfield Elementary. Or Merlin to baby Merlie.
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