2 Sep 2013
Flash: Australia’s July building approvals eyed - Westpac
FXstreet.com (Barcelona) - Australia’s July building approvals and two releases that will help shape expectations for Q2 GDP on Wed: company profits and business inventories, writes Sean Callow, FX Strategist at Westpac.
Key Quotes
" Having printed an unexpectedly weak -6.9% m/m in Jun, consensus is for building approvals to rebound in July by 4%. Westpac looks for 3% m/m, with the usual risk of a surprise due to variations between states (VIC was notably weak in Jun)."
"This is an important sector for the RBA, as it wants to see job-heavy construction pick up some slack as mining investment declines. The recent strength in auction clearances and house prices overall is not a major source of job creation but gains in construction would be."
Key Quotes
" Having printed an unexpectedly weak -6.9% m/m in Jun, consensus is for building approvals to rebound in July by 4%. Westpac looks for 3% m/m, with the usual risk of a surprise due to variations between states (VIC was notably weak in Jun)."
"This is an important sector for the RBA, as it wants to see job-heavy construction pick up some slack as mining investment declines. The recent strength in auction clearances and house prices overall is not a major source of job creation but gains in construction would be."