NZD/USD: Above-forecast New Zealand Building Permits fail to lift Kiwi
- NZD/USD is sidelined near 0.6450 during Wednesday's Asian trading hours.
- New Zealand's building permits rose by nearly 36% in May.
- China Caixin Manufacturing PMI is seen deteriorating slightly to 50.5 in June.
NZD/USD is struggling to extend Tuesday’s gains despite the better-than-expected New Zealand macro data released at 01:30 GMT.
The seasonally adjusted number of new dwellings consented rose by 35.6% in May, beating the forecasted decline of 0.1% by a big margin and marking a strong rebound from the 9.9% decline seen in April, official data published by Statistics New Zealand showed.
The rising number of permits is typically considered positive for the NZD, while a low reading is seen as bearish. As such, one may be anticipating big gains in the NZD, given the data bettered market expectations by a big margin.
So far, however, the NZD has failed to pick up a strong bid. The currency pair is currently trading largely unchanged on the day near 0.6450, having put in a session low of 0.6444 a few minutes ago.
NZD/USD rallied by 0.53% on Tuesday, as the China government’s upbeat Manufacturing PMI figure kept risk assets better bid and the safe-haven US dollar under pressure. The Caixin PMI, which surveys the small and medium-sized export-oriented units, is scheduled for release at 1:45 GMT. A big beat on expectations my draw bids for the NZD and other commodity dollars.
Technical levels