Australian Construction Financing Drop Could Signal End of Boom

Cracks are appearing in Australia’s housing construction boom and there are fears it will peak in the next 12 months.

Many have touted the property sector as the nation’s next big hope for the economy as mining investment fades, a hope supported by strong retail sales figures for June, published on Tuesday, which showed a splurge in spending by people renovating and fitting out houses.

But with the Reserve Bank of Australia preparing to give its quarterly outlook for the economy on Friday, financial analysts at the investment bank Nomura think the housing boost may soon run out of steam.

“Maybe we’ve fired that bullet,” said a Nomura strategist, Andrew Ticehurst.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza