THE TAKEAWAY: Decline in Residential Loans > Better Investment Real Estate Loans > AUD Flat
The Australian dollar was relatively stable against its American counterpart after mixed data for the southern nation’s real estate sector were mixed.
|
EVENT |
ACT |
EXP |
PREV |
|
Home Loans (MoM) (MAY) |
4.4% |
4.5% |
4.6% (R-) |
|
Owner-occupied Home Loans (MoM) (MAY) |
2.2% |
- |
6.7% (R+) |
|
Investment Lending (MAY) |
4.4% |
- |
-0.9% (R+) |
A decrease in home loans would usually mean a slowing real estate sector, confirming a weakness continuing since early 2011. However, an increase in investment lending, which includes loans for business real estate, indicates that investment spending is improving in Australia.
Due to the mixed data, the market was relatively unsure of the direction. However, the dominating theme of this morning continues to be higher than expected Chinese inflation, suggesting that China may continue to slow its economy. A drop in imports also pointed to China possibly changing the structure of its economy to be more focused on domestic development rather than trade.
DailyFX Research's commentary on Chinese Trade and Inflation
AUDUSD 5 minute chart; chart generated with FXCM Strategy Trader.
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