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The Australian dollar is trading higher today after a jump in the number of new home loans, brushing off poor CPI numbers out of China.
At 5.45pm (AEDT) the Australian dollar is trading at US83.20 cents after falling as low as US82.23 cents in yesterday’s trade.
The total number of home loans in Australia was up a seasonally adjusted 0.3% in October to 51,720 the Australian Bureau of Statistics said on Wednesday well above Analysts forecasts of a 0% rise and significantly above last month’s number of - 0.4%.
National Australia Bank senior economist David de Garis said the Australian property market is being underpinned by Sydney.
"The other states have been much flatter and if anything the Melbourne market has come off the boil a little bit," he said.
He also noted "We know there is a lot of new apartments coming on to the market in the next one to two years, that should at least be some type of headwind to house price growth in that market,"
Figures from China showed producer prices fell 2.7% in November from the previous year while consumer inflation slowed to 1.4%, its slowest pace since 2009.
This poor reading may keep a lid on the Aussie dollar’s gains as the market awaits the latest new loans report out of China tomorrow to see if it will follow in the footsteps of the disappointing CPI figures adding more evidence of a slowdown in China.
The latest unemployment rate from Australia, which is one of the biggest drags on the local economy at the moment is also due out tomorrow. Analysts expect a number of 6.3%, up slightly from last month’s 6.2%, and may put further pressure on the Australian dollar.
Market Overview by FiboGroup
At 5.45pm (AEDT) the Australian dollar is trading at US83.20 cents after falling as low as US82.23 cents in yesterday’s trade.
The total number of home loans in Australia was up a seasonally adjusted 0.3% in October to 51,720 the Australian Bureau of Statistics said on Wednesday well above Analysts forecasts of a 0% rise and significantly above last month’s number of - 0.4%.
National Australia Bank senior economist David de Garis said the Australian property market is being underpinned by Sydney.
"The other states have been much flatter and if anything the Melbourne market has come off the boil a little bit," he said.
He also noted "We know there is a lot of new apartments coming on to the market in the next one to two years, that should at least be some type of headwind to house price growth in that market,"
Figures from China showed producer prices fell 2.7% in November from the previous year while consumer inflation slowed to 1.4%, its slowest pace since 2009.
This poor reading may keep a lid on the Aussie dollar’s gains as the market awaits the latest new loans report out of China tomorrow to see if it will follow in the footsteps of the disappointing CPI figures adding more evidence of a slowdown in China.
The latest unemployment rate from Australia, which is one of the biggest drags on the local economy at the moment is also due out tomorrow. Analysts expect a number of 6.3%, up slightly from last month’s 6.2%, and may put further pressure on the Australian dollar.
Market Overview by FiboGroup