AUD Home Loans Unexpectedly Drop by 1.2%, Westpac Consumer Confidence Rise 3.7% - 11.7.2012

The Australian Housing Finance-Owner Occupied seasonally adjusted declined by 1.2 per cent in May compared to a revised 0.5 per cent increase in April according to the Australia Bureau of Statistics. Moreover, economists were expecting Home Loans to increase by 0.8 per cent, however they were disappointed. The Reserve Bank of Australia held its target Cash Rate at 3.5 per cent the previous week, holding borrowing costs high influencing negatively housing finance. The Aussie benchmark interest rate is the highest among major economies besides reducing it by 75 basis points in the first half of 2012. At the same time, the Westpac Consumer Confidence advanced by 3.7 per cent in July to 99,1 the highest level since February. The Aussie rose early today against the Japanese Yen by 50 points, from 80.69 to 81.22.