I can only quote the 4corners program and in Syd/Mel, 50% of house transactions are investment properties. first home owners are priced out of the market because cash is constantly looking for yield. This type of investment injection is not what the country needs to generate sustainable growth. This is similar to US consumerism, the biggest sector. They only generate a lot of low quality jobs but makes the numbers look great. Real estate industry generate a lot of tax but not export dollars. I am not an economist but I don't think these type of investments and jobs can reduce our public/private sector debts effectively.
So I think RBA is caught in in a dilemma of stoking inflation and making home affordability. There you have it with that news earlier. Big fall in the UAD. I was fortunate to take a long EURAUD last night NY session because I found the setup. Scaled off half and sit back hoping volatility through NFP will not take me out.
