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Economic recovery fuelled by HomeBuilder

AUD drifting ahead of construction data - MarketPulse

AUD drifting ahead of construction data May 25, 2021SharePrint The Australian dollar is flat in the Tuesday session. In the North American session, AUD/USD is trading at 0.7754, up 0.01% on the day. Will Construction Work Done rebound? Investors will be keeping an eye on Construction Work Done, a useful gauge of the strength of the construction sector (Wednesday, 1:30 GMT). Construction Work Done has sputtered, posting 10 straight losing quarters. However, the consensus is that the indicator will show a strong rebound in the first quarter, with an estimate of 1.9%. If the reading is within expectations, the Aussie could respond with gains. The Federal Reserve continues to stick to its message that its ultra-accommodative policy will continue and that will maintain current QE levels. Inflation surged in April, which led to speculation that the Fed might contemplate scaling back QE. This gave the US dollar a brief boost earlier in May, but the market appears to have accepted the

HomeBuilder drives big residential construction rebound

MacroBusiness Access Subscriber Only Content at 10:20 am on February 25, 2021 | 2 comments It is hard to deny that the Morrison Government’s HomeBuilder subsidy has given a much needed ‘shot in the arm’ to Australia’s housing construction industry. Under Homebuilder, the federal government provided $25,000 grants to underwrite the construction of new homes or major renovations for contracts signed before 31 December 2020. The scheme was later extended to 31 March 2021, albeit at a lower subsidy rate of $15,000. Yesterday, the Australian Bureau of Statistics (ABS) released data on the Value of Construction Work Done for the December quarter, which revealed that residential building activity rebounded by 2.7%, arresting more than two years of declines:

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