Financial regulators are keeping an eye on Australia s booming housing market, but at this stage they are comfortable that lending standards have not been relaxed.
New lending figures for April are released on Friday, which potentially will see a further rise in new housing loans after increasing 5.5 per cent to a record high in March, to be a huge 55.3 per cent higher than a year earlier.
The strength in lending has gone hand-in-hand with rising house prices, which nationally stand over 10 per cent higher than a year earlier.
Lending has largely been secured by owner-occupiers, and particularly first home buyers.
MacroBusiness
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See the latest Australian dollar analysis here:
The Australian dollar trends against crosses are unchanged:
Oil is breaking out of its bullish pattern as OPEC plays its usual game:
Base metals fell:
EM stocks boomed with Shanghai:
Oddly, EM junk went the other way:
US yields are in a holding pattern:
Same for stocks:
Event Wrap
US ISM manufacturing survey in May rose further to 61.2 (prior 60.7, est. 60.9). That said, key components were mixed: there were falls in prices paid (88.0, prior 89.6) and employment (50.9, prior 55.1), but gains in new orders (67.0 from 64.3), new export orders (55.4 from 54.9), and backlogs (70.6 from 68.2).
The Reserve Bank of Australia monetary policy announcement and Statement from Governor Lowe are due at 0430 GMT on 1 June 2021
Earlier:
Coming up the following day (Wednesday 2 June 2021) is an appearance by Guy Debelle, Deputy Governor, and Michele Bullock, Assistant Governor (Financial System), before the Senate Economics Legislation Committee (Estimates) By Eamonn Sheridan
Australian shares are set to reset their record high to start the week, but a pending deluge of figures and Melbourne’s outbreak could prove to be brakes.