Housing Demand Stagnant in Australia


The demand in the Australian housing market plunged for the month of May, where the number of new loans offered grew by just around 1.8% against the expected 2.3%, hence keeping the investors concerned about the consumer spending power that seems to be stagnant as well.

The Australian dollar being under pressure for the past 2 months fell more than 100 points on Friday where it became equivalent to 90 US cents, the lowest level since September 2010. Moreover, Goldman Sachs has forecasted the Aud/Usd to test 75 USD cents level by the end of this year.

Industrial Production Shrinks in the EuroZone

The industrial production in the Eurozone contracted by 0.3% in the month of May, against the 0.5% growth it witnessed in April. The Eur/Usd fell immediately after the release of this data as the investors took this release as a negative impact for the Eurozone’s economy where it also hints that the major exports from key countries including Germany are not up to the mark.

All Eyes on China

The Chinese GDP numbers for the second quarter of 2013 are due today in the Asian session where the economy is expected to grow by 7.7% as it did in the first quarter. Along with that, other key economic indicators including industrial production and Fixed Asset Investment numbers are due that would highlight on how the economy is performing in these key sectors.

However on Friday, the new loans offered to the consumers and businesses in China increased drastically to 861 billion for the month of June as compared to the previous reading of 667 billion in May. We could see a notable move in the Aud/Usd today as the Australian economy is highly dependent on Chinese economy, where good numbers could certainly take the pair to retrace back upwards.

Investors Await Retail Sales Data after Declining Consumer Sentiment Numbers

The purchasing power index grew by 0.8% for the United States in June, where it experienced a boost by 0.3% as it grew by just 0.5% in the month of May, hence signaling that producers are increasing the prices of their goods and services that indicate to a certain extent that inflation is rising. However, the Prelim UoM consumer sentiment reading came out to be 83.9 against the expected 85.3, while the previous reading was 84.1 in the month of May. The U.S stock market closed at its highest levels on Friday, as the consumer sentiment level remains still at 6-years high. Today, core retail sales data is to be released that are expected to grow by 0.5% against the previous reading of 0.3%.