Release Explanation: This report is the total amount spent by builders on both public and private construction projects. This helps traders build an economic picture of the trends of investments made in building projects, and therefore reads the sentiment that may eventually filter through to other areas of the housing and commercial building markets. The index surveys approximately 120 construction companies and askes respondents to rate the relative level of business conditions to include; employment, production, new orders, prices, supplier deliveries, and inventories.
Trade Desk Thoughts: The Australian construction sector decreased to 32 in November from a 36.4 the previous month. The sharpest decline seen in the subcomponents was apartment construction which fell from 30.7 to 23.8. Input prices also saw a steep drop from 83.3 to 76.3 for November. The new orders index and activity index also saw marginal declines as the employment index fell nearly six points to 29.8. The housing sector in Australia has been contracting since March of this year.
Trade Desk Thoughts: The Australian construction sector decreased to 32 in November from a 36.4 the previous month. The sharpest decline seen in the subcomponents was apartment construction which fell from 30.7 to 23.8. Input prices also saw a steep drop from 83.3 to 76.3 for November. The new orders index and activity index also saw marginal declines as the employment index fell nearly six points to 29.8. The housing sector in Australia has been contracting since March of this year.
Forex Technical Reaction: This release has had little effect on the aussie. The pairs neutral pivot point and 20 day SMA are only 15 pips apart and should act as fairly strong resistance to the upside.