Building approvals for December 2017 data is here:

Urgly ...

  • Westpac response (in brief)
  • Dwelling approvals dropped back sharply
  • An expected wind-back in Melbourne high rise approvals - a spike in which drove a 12.6% jump in Nov - was compounded by weakness in other segments
  • Looking through recent volatility, trend approvals are again moving lower with non high rise approvals in Q4 down 3.5%yr
  • Assessing trends in the erratic high rise segment is much trickier but site purchases point to a weak outlook
  • ... Overall, the Dec data confirms both our assessment that the Oct-Nov surge was temporary 'noise' and that the underlying tone to approvals is weak.
  • Note that data in coming months will be less reliable due to the January low season. Indeed, there may be even more volatility to come.


Meanwhile, AUD fell to its (late US) low:

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