Australian building approval
The Australian approvals were published by the Australian Bureau of Statistics ahead of the RBA’s (Reserve Bank of Australia) monetary policy. Building approvals fell by 2.9% on a month-over-month basis. This was well below the forecasts of an estimated rise of 0.9%. It would work towards increasing the odds of a rate cut by the RBA during the monetary policy meeting scheduled for today. The drop was highest in Western Australia and Tasmania—approvals fell by 5.2% and 3.7%, respectively. The rise in the Northern Territory and South Australia partially offset the fall. Building approvals rose by 3.6% and 1.6% in these regions.
Australian trade balance drops to lowest level in four months
The Australian trade balance data indicate the difference in value between exported and imported goods. The data came out on a disappointing note on August 2. The Australian trade deficit rose to 3.2 billion—compared to forecasts of a 2.0 billion deficit.
Impact on the market
Australian ETFs were trading on a negative note on August 1, 2016. The CurrencyShares Australian Dollar Trust ETF (FXA) fell by 0.95%. Meanwhile, the iShares MSCI Australia Index Fund ETF (EWA) followed a similar trajectory. However, it fell by 1.1%.
Australian ADRs (American depositary receipts) trading on US markets were also trading on a negative bias. BHP Billiton (BHP) fell by 1.6%. In the mining sector, British-Australian multinational Rio Tinto (RIO) fell by a 0.43%. Australian banking ADR Westpac Banking (WBK) was also trading on a negative bias. It fell by 1.3% on August 1, 2016.