A building approvals report released this morning by the Australian Bureau of Statistics uncovered a slump in demand in the housing market. The monthly indicator was expected to see an uptick of approximately 2.1%. The actual result seemed to convince many investors to move away from the Australian dollar (AUD).
Demand for new buildings is measured by this monthly indicator which reports on the percent change in new buildings approved for construction. The results revealed only 1.0% growth for the month of August, up from the previous month’s 3.6% contraction, but still bearish when compared with estimates. The news appears to be weighing heavily on the AUD this week.
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