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Australia Housing Data Disappoints

Australian housing data came out on Tuesday. The HPI and home loans numbers reflect a housing market that might still rolling along, but has taken the foot off the pedal.

For the March quarter, the house price index (HPI), rose by 1.7%. The previous quarters reading was revised up to 3.8%. Economists had forecast the March quarter reading to be a little hotter, around 3.0%. 


Home Loans
In March, home loans shrank at the rate of -0.9% after a growth of 2.3% in February. Economists had expected a flat to a slight decline of around -0.1%, so the data comes as a disappointment.


You can see that home loans growth has become more consistent, and while the readings have not been impressive to end 2013 and start 2014, we have not seen the troughs witnessed in 2008 and 2010. 
The AUD/USD hovered above 0.9350 and the disappointing Australian housing data did not add any volatility in this quiet 5/13 Asian session so far.