Back
2 Apr 2014
Australian building permits eyed - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, shares his view on today's building approvals release in Australia.
Key Quotes
"Last week RBA Governor Stevens was happy to predict a “boom” in housing construction. This is understandable given the Jan building approvals data which showed a 6.8% m/m, 34.6% y/y rise."
"Seasonality is very strong over summer so we won’t be too concerned if the February data falls by more than our -1.5% expectation (11:30am Syd/8:30am Sing/HK, median -2%)."
"Downward revisions are also possible, given approvals are outpacing construction-related loan approvals. But the broad outlook is very positive for the year ahead. Job-heavy construction is an important part of the rebalancing away from mining the RBA hopes to effect with its accommodative policy stance."
Key Quotes
"Last week RBA Governor Stevens was happy to predict a “boom” in housing construction. This is understandable given the Jan building approvals data which showed a 6.8% m/m, 34.6% y/y rise."
"Seasonality is very strong over summer so we won’t be too concerned if the February data falls by more than our -1.5% expectation (11:30am Syd/8:30am Sing/HK, median -2%)."
"Downward revisions are also possible, given approvals are outpacing construction-related loan approvals. But the broad outlook is very positive for the year ahead. Job-heavy construction is an important part of the rebalancing away from mining the RBA hopes to effect with its accommodative policy stance."