The Australian dollar has fallen a little after the latest poor economic data:
- Australia data - construction work done -3.1% q/q (vs. expected +0.5%)
- AUD response to the dreadful construction centre data ... subdued
- Response to weak Australian construction data coming in - RBA to cut twice in 2019
In summary comments from Westpac's first impressions of the data:
- Q4 ... construction activity was much weaker than anticipated
- poses a downside risk to our forecast for Q4 GDP
- which is currently 0.5%qtr, 2.7%yr.
- It does help to explain the loss of momentum in business conditions
- key dynamic is that the new home building cycle has turned
- Public infrastructure activity is the surprise … (but) we expect public works to add to activity in 2019
