Australia HIA New Home Sales Posts Loss in Q4

Australia HIA New Home Sales Actual -1.7%, Previous -4.1%

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: During the December quarter, the Australian housing market saw a 1.7 percent decline during the previous three months. House prices for the year fell 3.3 percent, down from a 2.8 percent gain during the September quarter. Melbourne suffered the worst fall, sinking 1.7 percent over the quarter, while Sydney slid 0.3 percent, and a drop of 0.9 percent and 1.0 percent in Perth and Hobart, respectively.

Forex Technical Reaction: The aussie is currently trading at .6329 after this release as most major trade desks awaken to the start of the trading week.

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