NZD/USD: Attempting recovery despite weak NZ housing data

• The NZD is reporting marginal gains in Asia, having dropped sharply on Tuesday. 
• New Zealand building permits fell sharply in March, as per the official data released earlier today. 
• A stronger corrective bounce may remain elusive, courts of dovish RBNZ expectations.

NZD/USD is looking to regain some poise after having dropped 0.85% on Wednesday on the back of dismal New Zealand employment data and upbeat comments from Fed’s Powell. 

As of writing, the pair is trading at 0.6624, representing a 0.11% gain on the day and up seven pips from the low of 0.6617 hit on Wednesday. 

A stronger corrective bounce, however, may not materialize, as the data released earlier today by Statistics New Zealand showed the total number of building permits issued in New Zealand fell at a seasonally adjusted rate of 6.9% month-on-month in March, following a downwardly revised 1.7 percent increase in February. 

The housing data will likely add to the pressure on the RBNZ to ease in May. As a result, New Zealand’s 10-year overnment bond yield may slip tp fresh one-month lows below 1.84%, dragging the NZD lower. 

Pivot points