AU dips as Australian building approvals hit lowest level in five years

The Australian dollar took a hit after Australian building approvals fell to the lowest level in over five years in November

AUS Source: Bloomberg

The Australian dollar fell on Wednesday after Australian Bureau of Statistics (ABS) figures showed Australian building approvals fell to the lowest level in over five years in November.

A total of 216,326 dwellings were approved over the year, according to the ABS.

ABS figures show approvals fell by 9.1% to 15,465 in seasonally adjusted terms, well below market expectations.

Approvals from November 2017 fell 32.8%, the lowest since August 2013.

According to the Westpac bank, by state, approvals dropped 14.6% in Victoria, 9.3% in New South Wales, 7.3% in Western Australian and 4.3% in Queensland.

ABS figures show the trend estimates of the value of total building approved fell 0.8% in November and were on the incline for 12 months.

While the value of residential building fell 1.6% fell for 11 months, while the value of non-residential building rose 0.6% and has risen for two months.

According to the ABS, the seasonally adjusted estimate of the value of total building approved rose 1.5% in November, while the value of residential building fell 3.9%, and the value of non-residential building rose 11.1%.

Australian dollar price

AUD/USD took a hit upon the news, coming off intraday highs after a technical pop above $0.715.

Analysts say the data was a big miss and was the main contributor to the fall in the Australian dollar price.


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