A client note from Westpac on the Australian housing finance data earlier today (here)

From Matthew Hassan, Westpac Senior Economist

  • data was the proverbial 'dog's breakfast'
  • Changes associated with APRA's 'macroprudential' measures to contain investor housing activity... combined with revisions due to changes in estimates of first home buyers and some banks reclassifying loans from investor to owner occupier... created significant disruptions in the month


  • The total value of loans was up 3.5%mth and 4.1%mth ex refi with both measures up close to 20%yr. This is the most reliable gauge of market momentum while policy-related disruptions are affecting the mix and indicates that, as at August, demand overall was still carrying solid momentum, above a 20% annual pace on a 6mth basis


The data has been viewed as AUD positive by the market too.

AUD/USD is knocking on the door of its September high, after 7 consecutive up days!

Its approaching resistance around and just above 0.7300