Release Explanation: This report indicates the number of domestic building permits granted for the month. Strong growth in new approvals and permits indicates a growing housing market. Because real estate generally leads economic developments - housing tends to thrive at the start of booms and wane at the onset of recession - the figure can be used with others to forecast future growth in the economy as a whole.
Trade Desk Thoughts: The building approvals from Australia fell a seasonally adjusted 3.7 percent, month over month, in January. This was against expectations for the relatively small increase of 1.4 percent. The trend estimate for total dwellings approved has fallen 4.3 percent for the 14th consecutive month in January. Private sector homes fell 2.0 percent and other dwellings dropped 11.0 percent.
Forex Technical Reaction: The Australian dollar weakened significantly in the minutes leading up to the release but then gained it back after the report was released. The pair is finding support slightly above the neutral pivot point.