Event-full week in Australia
It has been a data-full week for AUD-trading. On Tuesday policy meeting, the RBA maintained its overnight cash rate target unchanged at 2.50%, stating that the drop in the Aussie is still insufficient to boost the economic recovery. In his speech, RBA Governor Stevens voiced his discomfort regarding the unbalanced growth in lending for housing assets and mortgage markets, despite a moderate overall growth. Data on Friday confirmed Stevens’ fears. The home loans fell 0.9% in month to
August; the owner-occupier loans (desired ones) dropped 2.0%, but the investment lending contracted only by a tiny 0.1%. Although the AUD traded ranged following the absence of detail regarding RBA tools to cool off the housing market, the expectations for macro-prudential measures should temper the AUD weakness in coming months.
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