Release Explanation: This report indicates the number of domestic building permits granted for the month. Strong growth in new approvals and permits indicates a growing housing market. Because real estate generally leads economic developments - housing tends to thrive at the start of booms and wane at the onset of recession - the figure can be used with others to forecast future growth in the economy as a whole.
Trade Desk Thoughts: The building approvals from Australia fell a seasonally adjusted 5.4 percent, month over month, in September. This was against expectations for a relatively flat reading of 0.2 percent. The previous month’s number was revised upward to 5.9 percent from 7.2 percent. Annually, the rate of building approvals fell 26 percent versus last month’s 21.6 percent while economists had forecasted a 21.5 percent drop. The report indicated that other dwellings decreased by 11.4 percent while private sector houses fell by 2.7 percent, month over month.
Trade Desk Thoughts: The building approvals from Australia fell a seasonally adjusted 5.4 percent, month over month, in September. This was against expectations for a relatively flat reading of 0.2 percent. The previous month’s number was revised upward to 5.9 percent from 7.2 percent. Annually, the rate of building approvals fell 26 percent versus last month’s 21.6 percent while economists had forecasted a 21.5 percent drop. The report indicated that other dwellings decreased by 11.4 percent while private sector houses fell by 2.7 percent, month over month.
Forex Technical Reaction: The Australian dollar has been rejected from the LFB R1 level in earlier trade and is looking to find a base just above the neutral pivot point at .6455.