Australia: Credit growth slowing – Westpac

Sandeep Kanihama FXStreet Contributor

Andrew Hanlan, Research Analyst at Westpac, explains that Australian credit growth has been slowing as the housing sector cools in response to tighter lending conditions.

Key Quotes

“Total credit grew by 0.4% in July and by 0.5% in August, an improvement on the weak outcomes over May, +0.2%, and June, 0.3%.”

“Annual total credit growth is now 4.5%, moderating from 4.8% for 2017, 5.6% in 2016 and a 6.6% expansion in 2015.”

“Housing credit growth over the past year is 5.4%, down from 6.3% for both 2016 and 2017, and well below the 2015 outcome of 7.4%.”

“Currently, business credit growth is undershooting growth in non-mining business investment, the reverse of the experience in recent years, suggesting a greater reliance by businesses on other sources of funding, including retained earnings.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

AUD/USD edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY treads water near 158.00 ahead of BoJ

USD/JPY navigates an inconclusive range around the 158.00 neighbourhood ahead of the opening bell in Asia on Friday. Indeed, the pair alternates gains with losses following Wednesday’s decent pullback as investors gear up for the imminent interest rate decision by the BoJ. In the meantime, market consensus expect the central bank to keep its hands steady.

Gold remains sidelined just above $4,000

Gold leaves behind the recent three-day positive streak and faces renewed selling pressure near the $4,000 mark per troy ounce on Thursday. The precious metal’s daily decline comes amid marginal gains in the US Dollar and mixed US Treasury yields, while crude oil prices remain on the back foot.

HYPE soars 17% as ICE, Druckenmiller invest in tradeXYZ for US expansion

Hyperliquid (HYPE) jumps 17% on Thursday as Intercontinental Exchange (ICE) announced it will partner with trade[XYZ] to bring Hyperliquid-based perpetual futures markets to the US, expanding efforts to introduce on-chain derivatives trading within a regulated framework. Billionaire investor Stan Druckenmiller will also join as an investor in trade[XYZ].

BoJ preview: Hawkish hold

Having hiked rates by 25bp to 1.25% in September, the central messages from the BoJ were largely similar; upside price risks remained, real interest rates were still negative and further policy rate hikes should be expected.

A hot US economy is supposed to sink Gold. It didn't. Here's why

Gold (XAU/USD) remains under pressure near $4,000, as stronger-than-expected United States (US) economic data reinforce expectations of another Federal Reserve (Fed) interest rate hike in December. Economic growth is accelerating, inflation remains elevated, and borrowing costs could rise further.