Release Explanation: Change in the number of homes under contract to be sold but still awaiting the closing transaction. It is an especially important indicator at this time given the overall economic conditions. A happy householder will usually lead to a strong economic outlook. A miss here, either way, and the markets gets to see the real confidence of the Australian consumer. There is a very strong impact on the sentiment towards the Australian Dollar from this report, because it is considered to be a leading indicator.
Trade Desk Thoughts: During the month of November, the Australian housing market saw losses, according to the Housing Industry Association or HIA. New home sales fell 1.1 percent from one month prior after seeing a 3.1 percent growth in October. The decline is largely blamed on the scarce credit available to consumers and the general uncertainty of the economy. The Australian government announced a A$10.4 billion stimulus plan although this money was not injected into the economy until December.
Forex Technical Reaction: The Australian dollar has risen slightly to .7210 and is currently 20 pips below the 100 day moving average which is located at .7230.
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