From the South China Morning Post:

  • Australian policymakers have two housing markets to worry about, and it is a toss-up which carries the most risk.
  • One is too cold, the other too hot.
  • One they cannot do anything about as it is in China, the other is a home-grown headache the authorities are just starting to wrestle with.
  • “There are two prices that matter for Australia now, those for homes and those for commodities,” said Paul Bloxham, the chief economist for Australia at HSBC. “Since the Chinese housing market is such a driver of demand for commodities, it matters just as much in the big picture as the domestic market.”

More here

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I posted earlier on what the RBA might do …Australia – “RBA seen as cautious on macro-prudential tools “ and

Australia – “The Reserve Bank is caught between a rock and hard place”