Due at 0130 GMT Australia, Building approvals for March
expected -12.0% m/m, prior +19.1%
expected -25.1%, prior -12.5%
NAB have a few comments:
- building approvals likely to continue their downtrend
- NAB cite the ongoing decline in the housing markets
ANZ:
- Building approvals surged in February on the back of 62% jump in unit approvals. We expect to see much of this jump reversed in March, though the modest easing in credit conditions suggested by the ANZ-Property Council of Australia survey does imply that we are most likely past the bottom
Westpac say the surge in the m/m for February was driven by 'a big spike in high rise approvals' and expect give back in today's release:
- The reversing high rise spike is expected to see a sharp fall in total dwelling approvals in March. Meanwhile construction-related finance approvals are also suggesting the weakening in non-high rise approvals is starting to moderate, although this is more likely to show through in coming months.
The data may give AUD a short term wiggle. The bigger risk side is likely a topside surpise, given a drop is baked in.
