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8 Jan 2015
Australian Nov building approvals eyed - Westpac
FXStreet (Bali) - Australian Nov building approvals, main event in the Asian calendar, should partially retrace some of the Oct surge, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"Australian Nov building approvals should partially retrace some of the Oct surge (11:30am Syd/8:30am Sing/HK). Westpac looks for -4% m/m (median -3%) after +11.4% in Oct, with the outsize move of course driven by the apartment/townhouse component. This segment (“other dwellings”) slumped -25% in Sep then rebounded 31% in Oct (private sector). The softness in the recent approvals to build private houses (0.1%, -0.3%, -0.2% Aug-Oct) points to a decelerating underlying trend though loan approvals are a bit more encouraging. This will be a helpful reading on the state of residential construction ahead of Dec-Jan where seasonal factors are very large."
"The Asian data calendar is fairly quiet. There is once again no tension over the Bank of England MPC’s policy decision and its standard practice of not releasing a statement when it holds steady means no specific risk for sterling from the announcement. The US data calendar offers little distraction ahead of Friday’s employment report: weekly jobless claims and Nov consumer credit."
Key Quotes
"Australian Nov building approvals should partially retrace some of the Oct surge (11:30am Syd/8:30am Sing/HK). Westpac looks for -4% m/m (median -3%) after +11.4% in Oct, with the outsize move of course driven by the apartment/townhouse component. This segment (“other dwellings”) slumped -25% in Sep then rebounded 31% in Oct (private sector). The softness in the recent approvals to build private houses (0.1%, -0.3%, -0.2% Aug-Oct) points to a decelerating underlying trend though loan approvals are a bit more encouraging. This will be a helpful reading on the state of residential construction ahead of Dec-Jan where seasonal factors are very large."
"The Asian data calendar is fairly quiet. There is once again no tension over the Bank of England MPC’s policy decision and its standard practice of not releasing a statement when it holds steady means no specific risk for sterling from the announcement. The US data calendar offers little distraction ahead of Friday’s employment report: weekly jobless claims and Nov consumer credit."