Australian housing credit impulse declines in October, house prices to continue to fall through 2019

Housing credit impulse in Australia declines in the month of October. Private sector credit growth remained stable at 0.4 percent sequentially. However, it was a soft print as housing credit continued to decelerate. On a year-on-year basis, total private credit rose 4.6 percent.

Both owner-occupier and investor credit added to this, decelerating in the month. These moves were sufficient to dent the impulse of the housing credit, which historically leads house price changes. This move is in line with the view that house prices will continue to fall through 2019, noted ANZ in a research report.

Housing sector credit growth remained stable at 0.3 percent on a sequential basis, putting the year-on-year growth at 5.1 percent. Investor credit remained flat in October, whereas the year-on-year rate came in at 1.3 percent. Owner-occupier growth decelerated to 0.4 percent sequentially, the softest since 2015.

Business sector credit rose 0.6 percent sequentially, whereas it rose to 4.7 percent on a year-on-year basis, which is the best since January 2017.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was neutral at 14.7764, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 55.4135. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex