30 Jul 2013
Flash: Negative Aus housing headline may knock 20 pips off AUD/USD - NAB
FXstreet.com (Barcelona) - Markets should be paying attention on today's Australian building approvals, notes Sean Callow, FX Strategist at Westpac, "given the RBA is hoping residential construction will be a key area of growth as mining investment declines" Callow said.
Callow adds: "The median forecast for June approvals (11:30am Syd/9:30am Sing/HK) is +2% m/m after -1.1% in May but the range is wide, from -2% to +5% for this volatile series. Westpac looks for -1% m/m. This would translate to -3.6% y/y but the underlying trend is better than this implies. A negative headline m/m change would probably knock about 20 pips off AUD/USD."
Callow adds: "The median forecast for June approvals (11:30am Syd/9:30am Sing/HK) is +2% m/m after -1.1% in May but the range is wide, from -2% to +5% for this volatile series. Westpac looks for -1% m/m. This would translate to -3.6% y/y but the underlying trend is better than this implies. A negative headline m/m change would probably knock about 20 pips off AUD/USD."