Australian dollar flat despite weak building approvals

Building approvals fell 9.4% in August according to the Australian Bureau of Statistics (ABS), slightly exceeding expectations by1%.

Source: Bloomberg

This comes following a 4.6% fall in building approvals in July, according to the ABS.

The estimate for total dwellings approved fell 1.9% in August, while the seasonally adjusted estimate for total dwellings approved fell 9.4% in August.

Private sector houses also suffered in August, with the trend estimate falling 1.2%, and the seasonally adjusted estimate fell 1.9%.

The trend estimates of the value of total building approved fell 1.3% in August following a 9-month low.

The value of residential building fell 0.8% following 7-month lows. The value of non-residential building fell 2.3% and has fallen for 13 months.

The seasonally adjusted estimate of the value of total building approved fell 9.5% in August following a 6.9% rise in July.

The value of residential building rose 0.7%, while the value of non-residential building fell 24.5%.

The Australian dollar eased to 0.7164 against the US dollar upon the weak data, slightly falling from 0.7173.

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