AUD: Rebound in new home sales while the private sector credit growth slowed - TDS

Research Team at TDS, notes that the today's Australian economic releases showed that the new home sales rebounded while the private sector credit growth slowed.

Key Quotes

“New Homes sales rebounded 6% in Aug, following the near 10% decline in July. The bounce was led by the volatile apartment sector,  up nearly 18% in the month with all states bar Victoria seeing sales lift in dwelling sales.

RBA Private sector credit slowed in Aug, +0.4%/m, below +0.5%/m anticipated, to see annual credit growth slow to the lowest levels since 2014.  Driving this weaker result was the a slowdown in lending to investors, +4.6%/yr, well down from the 10%/yr APRA growth limit to lows last seen in Nov 2009. As far as read thru for the RBA, it should provide them with a degree of confidence that housing risks have diminished.”