We're closely watching August Canadian housing data because it was the month when a special tax on foreign buyers on the west coast kicked in. That shouldn't really affect new homes.
In any case:
- Starts 182.7K vs 194.7K in July
- Urban starts -6.1%
"Housing starts declined in August, as construction of multi-unit dwellings slowed in most regions, led by lower activity in Alberta and Manitoba" said Bob Dugan, CMHC Chief Economist. "However, housing market activity levels remain elevated and this decline in starts is the market's response to increasing levels of supply. Multi-unit inventories are above average in several major markets across the country."
USD/CAD is again nearing session highs as it ignores the jump in oil and is swept away by the strong US dollar bid.