Release Explanation: Change in the number of homes under contract to be sold but still awaiting the closing transaction. It is an especially important indicator at this time given the overall economic conditions. A happy householder will usually lead to a strong economic outlook. A miss here, either way, and the markets gets to see the real confidence of the Australian consumer. There is a very strong impact on the sentiment towards the Australian Dollar from this report, because it is considered to be a leading indicator.
Trade Desk Thoughts: New home sales have increased by 3.9 percent in February. This is the second consecutive monthly increase according to the survey that is published by the Housing Industry Association in Australia. Meanwhile, pre-contract sales of apartments and homes fell for a fifth consecutive month as a result of leery investors who are concerned that the credit crunch may constrain activity. For February, new home sales decreased by 3.9 percent in South Australia and by 5.6 percent in Victoria while detached homes were up in the three months to February 2009 in New South Wales and Victoria. Sales increased in Queensland, by 21.7 percent, and 11.1 percent in New South Wales while Western Australia saw a modest 4.2 percent increase.
Forex Technical Reaction: The aussie has almost closed the gap from the start of the trading week but is still currently below the neutral pivot point.