On Friday, the Australian Bureau of Statistics (ABS) released housing finance data for August, which reported that investor demand continues to rise. The volume of investor mortgages originated has almost risen back to the pre-monetary tightening peak after growing by 34% year-on-year: At the same time, the growth in first-home buyer mortgages has stalled in
A sober report from Barclays with excellent detail. Symmetric interest rate cut and mortgage rates cut To protect banks’ NIM, PBoC governor Pan said lending and deposit rates will be cut symmetrically by 20-25bp. We estimate a cut of such magnitude would benefit corporates and free some capacity for new investment, while given the high
Last week, the Australian Bureau of Statistics (ABS) released dwelling approval data, which revealed that only 166,200 dwellings were approved in the year to August, which is 73,800 (31%) below the 240,000 annual run rate required to meet Labor’s 1.2 million housing target. On Friday, the ABS also released data on the number of loans
Freelancer CEO Matt Barrie was interviewed by the Equity Mates podcast, where he argued that “Australia has all the resources and potential to be the wealthiest country in the world”. However, policymakers have instead delivered a “cost of living crisis instead”. Here are some of the interview’s key highlights, followed by my own additions. Edited
For years, MacroBusiness has argued that Australia’s productivity has been stifled through “capital shallowing”, which occurs when infrastructure and business investment fail to keep pace with population growth. The result is less capital per worker, rising congestion costs, lower productivity growth, and lower per capita GDP growth. The following chart shows Australia’s long-run trend per
Australia’s auction market has stalled, indicating that both Melbourne and Sydney could soon experience falling prices. Last weekend’s final national auction clearance rate of 60.6% was the lowest of 2024, following six consecutive weekly declines. It was also well below the 64.4% final auction clearance rate recorded in the same weekend last year. Melbourne’s final
DXY is on a tear after holding support: AUD is the reverse: JPY has rolled. CNY is next: Oil is blasting the shorts: Metals have a new enemy in DXY: Miners look toppy: EM awaits China’s return: Junk is taking a breather: As yields back up: While stocks take another crack at ATH: US jobs
Local Reads: Australians delay dental care and remain on long public wait lists, leading to more in hospital – ABC Pro-Palestinian events in Sydney’s CBD to go ahead after police withdraw NSW Supreme Court application – ABC The sensitive data of Australia’s security personnel is at risk of being on-sold to foreign actors – ABC
All eyes are on tonight’s US unemployment numbers, aka the non farm payrolls, with some Japanese macroeconomic and political wobbles the only highlight in the region as mainland Chinese markets remain closed. The USD has remained somewhat strong from its safe haven surge as the Australian dollar tries but fails to get back above the
Courtesy of Calculated Risk. On Friday at 8:30 AM ET, the BLS will release the employment report for September. The consensus is for 145,000 jobs added, and for the unemployment rate to be unchanged at 4.2%. There were 142,000 jobs added in August, and the unemployment rate was at 4.2%. From BofA: Although the labor