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 rose a seasonally adjusted 7.8 percent, month over month, in February. This is the first increase seen in the index since June 2008. The trend estimate for total dwellings approved has fallen 2.0 percent for the 15th consecutive month in February. Private sector homes fell 1.2 percent and other dwellings dropped 4.1 percent.
Forex Technical Reaction: The Australian dollar weakened significantly in the minutes leading up to the release, falling below the neutral pivot point and finding that area as resistance after the report was released.