Australia: Slight gain in dwelling approvals - Westpac
|Matthew Hassan, analyst at Westpac, points out that the Australian dwelling approvals posted a better than expected 2.5% lift in Jan, paring back some of the weakness seen in previous months as the approvals slid over 25% through the last three months of 2018.
Key Quotes
“The consensus forecast had been looking for a 1.5% gain.”
“The detail was mixed. On the positive side, the weakness in non high rise approvals, which was one of the more striking features of the deterioration between Oct and Dec, showed a decent reversal. Detached house approvals in particular posted a solid 2.1% gain, reversing all of last month's 1.7% decline (but still down 2.6% on a rolling 3mth average basis). That may be an indication that some of the earlier weakness may have related to longer delays in obtaining finance.”
“Overall the Jan update pares back some of the concerning weakness that was emerging through the back end of 2018, particularly around non high rise activity. However, the through the year numbers are clearly still very weak and dwelling construction will continue to detract materially from growth in 2019.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.