Australia building approvals responses coming in - risk of sharp correction lower

Author: Eamonn Sheridan | Category: News

The Australian data earlier was a huge beat, with a subsequent marking up for AUD/USD:

Response coming in now from Westpac (in brief, bolding mine):
  • Dwelling approvals continued to surprise to the upside in November
  • November's uplift was driven by a jump in Victorian approvals ... increase in Victoria was concentrated in private apartment approvals, in particular the high rise component (four or more storey blocks).
  • However, the high rise series is typically volatile, and November's surge likely reflects a lumpy project pipeline. This raises the risk of a sharp correction lower in apartment approvals in coming months even though Victoria has been seeing strong population growth.

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